The resumption of US government debt collection for deferred student loan obligations is precipitating a precipitous decline in the creditworthiness of millions of Americans, with loan servicers, after a 90-day delinquency period, reporting arrearages to major credit repositories, thereby inflicting credit rating damage commensurate with a personal bankruptcy filing, subsequently impeding access to, and inflating the cost of, crucial financial instruments such as auto loans, mortgages, and credit facilities; indeed, the Federal Reserve Bank of New York documented a significant credit score erosion amongst over three million student loan obligees in the first fiscal quarter of 2025, a consequence of the abrogation of the US Department of Education’s pandemic-era moratorium, initiated in March 2020 and briefly reinstated with a one-year grace period following its 2023 expiration, before the Trump administration's reinstatement of rigorous debt recovery protocols in late 2024.