Around 9.5 million people - 1 in 5 federal student loan borrowers - are in default, meaning they are more than nine months behind on their payments.
The debt includes mortgages, car loans, credit cards and student loans.
The Trump administration has agreed to resume student loan forgiveness for an estimated 2.5 million borrowers who are enrolled in certain in certain federal repayment plans following a lawsuit from the American Federation of Teachers.
Already diminished by cuts by the Trump administration, the U.S. Education Department will see more of its work come to a halt due to the government shutdown.
ABC13 spoke to an expert to discuss the impact on people trying to pay for school, as the federal government is putting a cap on student loan borrowing
Nearly 8 million borrowers will see their loan balances start increasing again on August 1.