Default Apocalypse: Millions Face Credit Score Doomsday! (I Might Just Give Away a Billion Dollars)

Collections Are Back Baby!

Alright team Jimmy here! So the U.S. Department of Education is like 'Surprise!' and restarting collections on those pesky student loans that have been in default since like forever (aka March 2020). Apparently this is going to send millions of credit scores straight to the shadow realm. It's like when Chandler binged all the seasons of Lost in one sitting a total disaster! And you know what happens when your credit score tanks... NO LAMBO FOR YOU!

63 Points Down the Drain! (That's Like Half a Video Budget!)

TransUnion did some fancy number crunching and found that if you're already facing default your credit score could drop by an average of 63 points. SIXTY THREE POINTS! That's practically an entire Squid Game challenge worth of points! And if you're a 'super prime borrower' (whatever that means – probably someone who subscribes to MrBeast Gaming) you could see your score plummet by up to 175 points. Ouch! "Consumers may find themselves shocked by the dramatic and immediate impact that a default can have on their credit scores," said some dude from TransUnion. Shocked? They'll be traumatized! I might need to do a video where I pay off everyone's student loans. Is that even possible?

The Rich Get Poorer (Credit Wise)

Turns out having a good credit score before this whole mess makes the fall even harder. Like that one time I tried to do a backflip – total wipeout! Some Bankrate guy Ted Rossman said 'The bigger they are the harder they fall.' Sounds like a cheesy action movie but it's actually kinda true here. If you have excellent credit that drop could be 100 points or more! That's like losing a million subscribers overnight! (Please don't unsubscribe).

Wage Garnishing? That's Just Mean!

So what happens when your credit score goes kaput? The government can start seizing your tax refunds Social Security benefits and even a chunk of your paycheck! That's like taking away your chance to buy a new Tesla... or a yacht... or even just a lifetime supply of Feastables! The Secretary of Education even wrote about it in the Wall Street Journal. I need to get in on this op ed game. 'MrBeast Solves World Hunger – One Feastable at a Time!' Has a nice ring to it.

Nine Million Screwed... I Mean Affected!

The Federal Reserve is predicting that over nine million borrowers are going to see their credit scores take a nosedive in early 2025. NINE MILLION! That's more people than live in some countries! They said the 'damage to their credit standing will have already been done and will remain on their credit reports for seven years.' Seven years?! That's practically a lifetime in internet years! This is worse than the time I accidentally set off all those fireworks at once. We need to do something about this team. Operation: Credit Score Rescue is a go!

42 Million Suffering: Challenge Accepted

Apparently around 42 million Americans have federal student loans and over 5 million are already in default. That's a lot of people who could use a helping hand... or maybe a few million dollars. I'm just spitballing here! The situation is so bad that credit agencies are already seeing a drop in average scores. One in five borrowers is over 90 days late on payments. Yikes! Looks like it's time for MrBeast to step in and do what the government should be doing. Stay tuned folks... this could get interesting. Remember subscribe donate like and share.