The Education Department announced a long-delayed expansion of a key repayment plan for student loans this week, paving the way for more borrowers to apply.

Preston Cooper at AEI recently published an analysis of the latest federal student loan data, and the results were sobering: 5.5 million borrowers in default, another 3.7 million more than 270 days late on their payments and 2.7 million in the early stages of delinquency.

The Education Department signaled earlier this year that it would move to resume wage garnishment, among other forms of involuntary collection, for those in default.

Buried in the SAVE plan settlement is a provision that could place major restrictions on the Education Department's ability to enact new student loan forgiveness.

About 5.5 million borrowers are currently in default. They haven't risked wage garnishment since the beginning of the pandemic, when policymakers paused the practice.