schools
As defaults on student loans surge, millions are trying to get their lives back on track
Summary by The Minneapolis Editorial Desk · Based on reporting by ABC , KSTP 5 Eyewitness News (ABC)
· July 20, 2026
· 8 min read
Life after college did not go as Ashley Dreahn planned.
After starting out as a teacher, she went back to school — and took out more loans — in hopes of landing a higher-paying job in the chemical processing industry. It never materialized, and then came Hurricane Harvey, a job loss and a car br...
Story provenance No corrections
Summary created by The Minneapolis Editorial Desk — automated, rule-governed Original reporting ABC, KSTP 5 Eyewitness News (ABC) Original story Read at the source Source published Jul 20, 2026 AI assistance Automated summary drawn from the source’s own published text Prepublication human review No — editorial rules, flagged-item review, and published samples
Every story comes with a passport. How we work · Corrections log
Key takeaway By 2022, she was so broke she filed for bankruptcy.
Why this matters in The Minneapolis
The surge in student loan defaults has significant implications for Minneapolis, where many residents are likely struggling to make payments. As the number of borrowers in default grows, it can have a ripple effect on the local economy, impacting credit ratings and leading to wage garnishments. This can be particularly challenging for Minneapolis residents who are already facing high costs of living and stagnant wages. The dismantling of the SAVE plan, an income-driven repayment option, may also disproportionately affect low-income borrowers in the city, who rely on affordable repayment plans to manage their debt. As the federal government considers resuming collections on defaulted loans, Minneapolis residents may face additional financial strain, making it essential to explore local resources and support for borrowers struggling to stay afloat. The city's schools and community organizations may need to play a critical role in providing guidance and assistance to those affected by the student loan crisis.
About this story
Original reporting by KSTP 5 Eyewitness News (ABC) . The Minneapolis surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSTP 5 Eyewitness News (ABC) . Have a tip or correction? Contact our newsroom .
Category: schools ·
Published: July 20, 2026 ·
Source: KSTP 5 Eyewitness News (ABC) ·
Reading time: 8 min
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Frequently asked about this story
What is this story about? Life after college did not go as Ashley Dreahn planned.
After starting out as a teacher, she went back to school — and took out more loans — in hopes of landing a higher-paying job in the chemical processing industry. It never materialized, and then came Hurricane Harvey, a job loss and a car br...
When was this published? This article was first published on July 20, 2026 by KSTP 5 Eyewitness News (ABC) and curated for The Minneapolis readers.
Who reported this story? This story was reported by ABC at KSTP 5 Eyewitness News (ABC). To learn more about how The Minneapolis selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more schools coverage from The Minneapolis, or browse our daily briefing and topic hubs .
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