Key witness in Karen Read murder retrial testifies for 3rd day

Key witness in Karen Read murder retrial testifies for 3rd day
Key witness in Karen Read murder retrial testifies for 3rd day
(Photo by Pat Greenhouse/The Boston Globe via Getty Images)

(NEW YORK) — One of the key witnesses in the Karen Read murder retrial continued to testify for a third day Friday on the events surrounding the death of Read’s boyfriend, Boston police officer John O’Keefe, who was found unresponsive in the snow outside a Massachusetts home in 2022.

Prosecutors allege, following a night of drinking in Canton, that Read struck O’Keefe with her Lexus SUV outside of a get-together at another officer’s home and left him to die in a blizzard in January 2022. An autopsy found that the 46-year-old died of hypothermia and blunt force injuries to the head.

After a jury was unable to reach a verdict in the initial murder trial last year, Read is being retried on charges including second-degree murder, vehicular manslaughter while operating a vehicle under the influence of alcohol and leaving the scene of a collision causing death. She has pleaded not guilty and maintains her innocence.

Jennifer McCabe, a friend of O’Keefe who had testified during the first trial, took to the stand for the third day during the retrial on Friday in Dedham, Massachusetts.

In her extensive testimony this week, McCabe recounted that she had attended a social gathering at a bar the night before O’Keefe was found unresponsive in the snow with him, Read and others. McCabe was also at the get-together following the gathering at the bar at a home belonging to her sister and brother-in-law, a Boston police officer.

McCabe and another friend of O’Keefe’s — Kerry Roberts — another key trial witness who testified last week — drove with Read through a blizzard to search for O’Keefe after he never came home the night before, ultimately finding him outside McCabe’s sister’s home unresponsive.

McCabe testified Wednesday that while talking to a first responder at the scene, she heard Read say, “I hit him, I hit him, I hit him.”

Defense attorney Alan Jackson grilled McCabe on her recollection of the events of that day and in the days, weeks, months and years after, highlighting inconsistencies in her various testimonies and against police reports.

In one instance, Jackson noted that, after receiving a call from O’Keefe’s niece and Read that O’Keefe was missing, McCabe had called her sister, though she did not mention that call while testifying to the grand jury that indicted Read on the manslaughter and murder charges.

“There’s nothing nefarious,” McCabe said about the call, testifying that her sister did not answer and she didn’t remember calling her.

Asked by Jackson on her use of the word “nefarious,” McCabe said, “There’s nothing about me calling my sister that is nefarious, and I feel like you’re insinuating it might be and it’s not.”

Mark Jarret Chavous/The Enterprise via AP
Jackson also questioned McCabe about a broken taillight on Read’s SUV. McCabe testified that Read first mentioned the broken taillight in the early morning call with O’Keefe’s niece, though Jackson said that wasn’t included in a police report. McCabe stood by her account.

When pressed on forgetting certain details from that time, McCabe said, “There are certain things I’ll never forget.”

Jackson’s cross-examination also focused on McCabe’s Google search for how long it takes to die in the cold. She testified this week that Read asked her to Google that after finding O’Keefe in the snow, with the search made after 6 a.m. Though Jackson said there is evidence it was made at 2:27 a.m. that morning, hours before O’Keefe was found. McCabe denied she made the search at 2:27 a.m. and said she searched it later that morning, upon Read’s request.

Jackson also alleged that a group chat including McCabe and several family members showed they were colluding in the days following the death to coordinate their statements, which McCabe denied.

As he wrapped up his cross-examination, Jackson grilled McCabe on the moments after they found O’Keefe in the snow outside her sister’s home, and why she didn’t run in to check on her sister and brother-in-law.

“The reason you didn’t go inside the house is because you knew better,” he charged.

McCabe said she wasn’t worried because “something happened on the front lawn that had nothing to do with anything inside that house.”

“You weren’t worried about them at all because you knew what really happened, didn’t you?” he countered.

“At that moment, I didn’t know that he was hit by a vehicle and there was taillight found next to him,” she responded.

On re-direct, special prosecutor Hank Brennan questioned McCabe on her state of mind upon finding O’Keefe.

“I was shocked, confused, nervous, scared, anxious — my friend was lying there on the ground, I didn’t know what happened,” she said.

On the Google search, McCabe affirmed that Read asked her to search how long to die in the cold, and that she had never attempted that search before then.

Brennan brought up McCabe’s texts with Roberts later that day, including one in which Roberts texted, “I can’t stop seeing him in the snow, Jen, this is awful.”

“Is your state of mind collusion?” Brennan asked McCabe, to which she responded, “No.”

McCabe has been dismissed as a witness. The trial adjourned for the day, with a forensic scientist from the Massachusetts State Police Crime Lab on the stand.

Following McCabe’s testimony on Wednesday, Read alleged McCabe was lying on the stand, saying she never told the witness to make a Google search that morning.

“Every statement’s different. Under oath. Not under oath,” she said. “This is very similar to what we saw a year ago.”

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DOJ reaches agreement in principle to settle lawsuit brought by family of Ashli Babbitt

DOJ reaches agreement in principle to settle lawsuit brought by family of Ashli Babbitt
DOJ reaches agreement in principle to settle lawsuit brought by family of Ashli Babbitt
Photo by Stephanie Keith/Getty Images

(WASHINGTON) — The Department of Justice has reached an agreement in principle to settle a lawsuit brought by the family of Ashli Babbitt, a pro-Trump rioter who was shot by a U.S. Capitol Police officer during the Jan. 6 Capitol riot.

The details of the proposed settlement were not made clear during a Friday hearing before federal Judge Ana Reyes, of the U.S. District Court for the District of Columbia.

Babbitt’s family members sued the government in January 2024 seeking $30 million for what they allege was her wrongful shooting death by Capitol Police Officer Michael Byrd.

Byrd was cleared of any wrongdoing following an internal investigation into the actions leading up to his shooting of Babbitt as she tried to climb through a broken window that led to the House Speaker’s Lobby, where several lawmakers and their staff were sheltering from rioters.

Babbitt’s attorneys disclosed the agreement in principle was reached during the hearing, which was convened on an emergency basis after one of Babbitt’s prior attorneys sought a preliminary injunction on Friday to ensure he received payment for his work on the case if a settlement was formally announced.

Robert Sticht, the lawyer for Babbitt’s family, said he expected the family to sign the formal settlement agreement within the next three weeks.

President Donald Trump has repeatedly expressed his solidarity with Babbitt’s family and called for “justice” for what he has said was her “murder” at Byrd’s hands — in line with his broader vocal support for the pro-Trump rioters who attacked the Capitol to overturn his 2020 election loss.

In March, Trump said in an interview with Newsmax he wasn’t aware of the lawsuit brought by Babbitt’s family but promised he would “look into” it.

“I’m a big fan of Ashli Babbitt, OK, and Ashli Babbitt was a really good person who was a big MAGA fan, Trump fan, and she was innocently standing there — they even say trying to sort of hold back the crowd,” Trump said. “And a man did something unthinkable to her when he shot her, and I think it’s a disgrace. I’m going to look into that. I did not know that.”

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7 killed in crash between van, pickup truck near Yellowstone National Park

7 killed in crash between van, pickup truck near Yellowstone National Park
7 killed in crash between van, pickup truck near Yellowstone National Park
Douglas Sacha/Getty Images

(HENRY’s LAKE, Idaho) — Seven people were killed in a crash between a van and a pickup truck on an eastern Idaho highway near Yellowstone National Park, officials said.

The Mercedes passenger van — which was operating as a tour vehicle — collided with the Dodge Ram pickup around 7:15 p.m. Thursday on U.S. Highway 20 near Henry’s Lake, the Idaho State Police said.

Fourteen people were in the van and one was in the pickup. Six people in the van and the truck driver died in the crash, police said.

The cause remains under investigation, police said.

Henry’s Lake is about 17 miles from West Yellowstone, Montana, which is a gateway to Yellowstone National Park.

U.S. Highway 20 closed for nearly seven hours after the crash and has since reopened, police said.

This is a developing story. Please check back for updates.

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Measles cases surpass 900 in US as infections confirmed in 29 states, CDC data shows

Measles cases surpass 900 in US as infections confirmed in 29 states, CDC data shows
Measles cases surpass 900 in US as infections confirmed in 29 states, CDC data shows
Jan Sonnenmair/Getty Images

(NEW YORK) — Measles cases in the U.S. have surpassed 900 as outbreaks continue to spread across the county, according to new Centers for Disease Control and Prevention data published Friday.

A total of 935 cases have been confirmed in 29 states including Alaska, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Montana, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia and Washington.

At least six states including Indiana, Kansas, Michigan, New Mexico, Ohio and Texas are reporting outbreaks, meaning three or more related cases.

The CDC says 13% of measles patients in the U.S. this year have been hospitalized, the majority of whom are under age 19.

Among the nationally confirmed cases, CDC says about 96% are among people who are unvaccinated or whose vaccination status is unknown.

Meanwhile, 2% are among those who have received just one dose of the measles, mumps, rubella (MMR) vaccine and 2% are among those who received the required two doses, according to the CDC.

Dr. Conrad Fischer, chief of infectious diseases at One Brooklyn Health in New York City, told ABC News he is concerned about the growing number of cases in the U.S.

“This is a disease that was at the level of complete eradication; this should not be happening,” he said. “It’s very sad to have an enormously safe vaccine that has been used in billions of people and to have a sort of cultural societal amnesia about what these illnesses were like in the past.”

In the decade before the measles vaccine became available, the CDC estimates that 3 to 4 million in the U.S. were sickened by measles every year, about 48,000 were hospitalized and about 400 to 500 people died. About 1,000 people suffered encephalitis, which is swelling of the brain.

Measles was declared eliminated from the U.S. in 2000 due to a highly effective vaccination program, according to the CDC. But vaccination rates have been lagging in recent years, leading to an increase in cases.

In Texas, where an outbreak has been spreading in the western part of the state, at least 663 cases have been confirmed as of Tuesday, according to the Texas Department of State Health Services.

Meanwhile, officials in Denton County — in the eastern part of the state outside Dallas and Fort Worth — reported its first measles case this week in a patient who attended a Texas Rangers game.

The infected individual, an adult with unknown vaccination status, visited Globe Life Field and a handful of restaurants and other locations, Denton officials said.

Additionally, Chicago reported its first measles cases this week, one in a suburban Cook County resident with unknown vaccination status and another in an adult Chicago resident who traveled internationally and received one dose of the MMR vaccine, according to the Chicago Department of Public Health and Cook County Department of Public Health.

It comes as a WHO report this week found that cases in the Americas are 11 times higher this year than they were at the same time last year.

Six countries, including the U.S., Canada, Mexico, Argentina, Belize and Brazil, have reported a total of 2,318 cases so far this year. Last year had 205 cases at the same time.

Fischer said measles is not a benign virus and can cause serious complications, especially among vulnerable individuals such as young children and immunocompromised people.

“Measles has a chance to literally destroy your brain, to cause pneumonia, ear infections and, although it is only fatal in a relatively small number of people, it spreads so amazingly easily that even if it’s only a few percentages, it’s something extremely dangerous,” he said.

Fischer emphasized that measles is the most contagious infectious disease known to humans, even compared to other dangerous diseases like tuberculosis.

“For instance, tuberculosis will spread only to two or 3% of the people exposed,” he said. “But if you are not vaccinated and you’re exposed to someone with measles, you have a 90% chance of getting that infection.”

Dr. Whitney Harrington, a physician in the division of infectious diseases at Seattle Children’s Hospital, told ABC News the U.S. is at risk of measles becoming endemic again unless vaccination rates increase.

The CDC currently recommends that people receive two doses of the MMR vaccine, the first at ages 12 to 15 months and the second between 4 and 6 years old. One dose is 93% effective, and two doses are 97% effective against measles, the CDC says.

“We really know that vaccines are the single most important public health intervention for preventing infectious disease,” Harrington said. “And we know that they’ve dramatically decreased really the number of cases and the severity of cases of many infections, including measles.”

She encouraged parents who have not vaccinated their children yet to speak with a doctor or a health care provider about vaccination and the benefits of vaccination.

ABC News Youri’ Benadjaoud contributed to this report.

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10-year-old pinned under car in hit-and-run; 12-year-old, teacher also struck in alleged intentional act: Police

10-year-old pinned under car in hit-and-run; 12-year-old, teacher also struck in alleged intentional act: Police
10-year-old pinned under car in hit-and-run; 12-year-old, teacher also struck in alleged intentional act: Police
Charleston County Sheriff’s Office

(CHARLESTON, S.C.) — A man is accused of intentionally plowing into a 10-year-old, a 12-year-old and a teacher in a hit-and-run outside a school at a church on Sullivan’s Island, South Carolina, officials said.

Justin Collin Adams, who was taken into custody on Thursday following an hourslong manhunt, is charged with three counts of attempted murder and first-degree assault and battery, according to online records. He was held without bond at a Friday court appearance.

Adams is accused of intentionally targeting children Thursday afternoon at the Sunrise Presbyterian Church on Sullivan’s Island, a beach town just outside of Charleston, authorities said.

Adams allegedly first drove onto the playground and struck a 12-year-old, who suffered minor injuries, an officer said in court Friday.

He then allegedly sped toward where kids were seeking protection and hit a teacher who “flew over the hood and onto the roof and onto the ground,” the officer said.

Adams allegedly then drove onto the sidewalk and struck a 10-year-old, pinning him under the car, the officer said.

A federal criminal investigator — who is a member of the church and spoke on behalf of the families at Friday’s court appearance — said about 40 students witnessed the attack.

The teacher remains in the hospital with serious injuries, the church member said.

One child was treated at the scene and released, police said, and the second child was admitted to a hospital and later discharged, according to a hospital spokesperson.

The 10-year-old had 4.6 inches of ground clearance under the car, the church member said, calling his survival a “miracle.”

The 10-year-old’s mom gave an emotional statement in court Friday, saying, “I hope that no other mother had to get this phone call that I had to endure yesterday.”

“By the grace of God, they were saved,” she said, adding, “I am here to hopefully get justice for all of the children.”

Adams, 36, allegedly ditched his sedan after the crash and fled on foot, possibly armed with a knife, according to Isle of Palms police Sgt. Matt Storen.

Authorities launched a massive manhunt, which included grid searches of houses, drones scanning the sky and checkpoints at the entryway to Sullivan’s Island, police said.

A sergeant in a Charleston County aviation unit helicopter ended up spotting the suspect, who was found in a boat at a dock across the street from the church, officials said.

Adams’ attorney said in court that two weeks ago Adams voluntarily checked himself in to a hospital psychiatric unit. He was diagnosed with depression and prescribed Lexapro, which is used to treat anxiety and depression, his lawyer said.

He is due back in court on June 13.

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Trump’s 2026 budget proposal calls for $163B in cuts to federal spending

Trump’s 2026 budget proposal calls for 3B in cuts to federal spending
Trump’s 2026 budget proposal calls for $163B in cuts to federal spending
Win McNamee/Getty Images

(WASHINGTON) — The White House on Friday released President Donald Trump’s proposed budget for the 2026 fiscal year, which calls for $163 billion in cuts to federal spending.

Office of Management and Budget Director Russell Vought, in a letter to Congress alongside the proposal, said the cuts to discretionary funding would lead to “significant savings.”

“The President is proposing base non-defense discretionary budget authority $163 billion — 22.6 percent below — current-year spending, while still protecting funding for homeland security, veterans, seniors, law enforcement, and infrastructure,” Vought wrote.

While budget proposals are essentially wish-list for the administration, they serve to illustrate the president’s priorities and what the White House hopes is a jumping off point for negotiations with Congress.

The cuts proposed would come from the Department of Education, the Department of Health and Human Services, USAID and the Environmental Protection Agency, among others.

However, Trump is proposing a 13% increase to defense spending, which would bring it to $1.01 trillion for the next fiscal year.

The administration’s also proposing $175 billion to go toward the southern border.

This is a developing story. Please check back for updates.

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Newly released video shows Abrego Garcia’s 2022 Tennessee traffic stop

Newly released video shows Abrego Garcia’s 2022 Tennessee traffic stop
Newly released video shows Abrego Garcia’s 2022 Tennessee traffic stop
Kilmar Abrego Garcia speaks with a Tennessee state trooper on the side of I-40 in 2022. Tennessee Highway Patrol

(NEW YORK) — Newly released video shows the moments when Kilmar Abrego Garcia, the man wrongfully deported from the United States to a prison in El Salvador, was pulled over by state troopers in Tennessee in 2022.

The video, which was obtained by ABC News through a public records request, shows members of the Tennessee Highway Patrol questioning Abrego Garcia on the side of Interstate 40 after nightfall.

Abrego Garcia was not charged or arrested during the traffic stop, which lasted for more than an hour. This stop is separate from the stop in March by federal agents in Maryland that led to Abrego Garcia being taken into custody and ultimately deported to El Salvador.

Abrego Garcia, a Salvadoran native who has been living with his wife and children in Maryland, was deported in March to El Salvador’s CECOT mega-prison — despite a 2019 court order barring his deportation to that country due to fear of persecution — after the Trump administration claimed he was a member of the criminal gang MS-13. His wife and attorneys deny that he is an MS-13 member.

The 2022 traffic stop was disclosed in April in a press release issued by the Department of Homeland Security, which said it had a “bombshell investigative report” regarding the stop alleging that Abrego Garcia was a suspected human trafficker. The release included a screengrab of the body camera video.

“The encountering officer decided not to cite the subject for driving infractions but gave him a warning citation for driving with an expired driver’s license,” the release added.

“Kilmar worked in construction and sometimes transported groups of workers between job sites, so it’s entirely plausible he would have been pulled over while driving with others in the vehicle,” Jennifer Vasquez, Abrego Garcia’s wife, said in a statement after the release was issued.

The DHS press release said that the 2022 traffic stop occurred on Dec. 1, but an incident report released by the Tennessee Highway Patrol indicated that the stop took place on Nov. 30.

The traffic stop occurred in the Cookeville area, roughly 80 miles east of Nashville.

The trooper who pulled Abrego Garcia over told him that he was driving 75 miles per hour in a 65 mph zone. Abrego Garcia told the trooper that his license was suspended because he was waiting for an immigration paper, adding that he lives in Maryland and that the car he was driving belonged to his boss.

“You got a bunch of people in here, don’t you,” a trooper said after approaching the Chevrolet Suburban that Abrego Garcia was driving, according to the body camera video.

After going to his police car and returning, the trooper asks Abrego Garcia about how many rows of seats were in the car.

“I’ve never seen one with that many seats in it,” the trooper says.

“Oh, really?” Abrego Garcia responds.

The trooper then asks Abrego Garcia if there is anything illegal in the car.

“Nothing sir,” Abrego Garcia replies.

Abrego Garcia is asked to step out of the car and tells the trooper that he was traveling from St. Louis, Missouri, where he had a work project.

“Right now, I’m going back to home,” Abrego Garcia says before the trooper has a K-9 sniff the exterior of the vehicle. It appears that the police dog did not locate anything suspicious.

Troopers later allowed Abrego Garcia to sit in the back of a patrol car to escape the cold temperatures while they spoke among themselves and questioned his passengers, but no one at the scene was taken into custody.

“Thank you, bro,” Abrego Garcia says. “Thank you so much.”

Abrego Garcia was ultimately allowed to drive off, smiling at the trooper who stopped him as he exited the patrol car and returned to the Chevrolet.

The Tennessee Department of Safety and Homeland Security blurred license plates and redacted part of the audio of the traffic stop.

A federal judge ruled last month that the Trump administration must “facilitate” Abrego Garcia’s return to the United States, and the U.S. Supreme Court unanimously affirmed that ruling, “with due regard for the deference owed to the Executive Branch in the conduct of foreign affairs.”

The Trump administration, while acknowledging that Abrego Garcia was deported to El Salvador in error, has said that his alleged MS-13 affiliation makes him ineligible to return to the United States. Several members of the administration, including Attorney General Pam Bondi and White House deputy chief of staff Stephen Miller, have suggested that the matter is up to El Salvador President Nayib Bukele.

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2nd teen charged with arson for New Jersey wildfire: Prosecutor

2nd teen charged with arson for New Jersey wildfire: Prosecutor
2nd teen charged with arson for New Jersey wildfire: Prosecutor
Adam Gray/Getty Images

(OCEAN COUNTY, N.J.) — A second teenager has been arrested for arson in connection with a massive New Jersey wildfire that destroyed a commercial building, shut down a major highway and forced thousands of people to flee, prosecutors said.

The second suspect — an unidentified 17-year-old boy — was taken into custody on Thursday and charged with arson and aggravated arson for allegedly helping set wooden pallets on fire and leaving the area when the fire wasn’t fully extinguished, Ocean County Prosecutor Bradley Billhimer said.

The 17-year-old was also charged with hindering apprehension for allegedly giving “misinformation to law enforcement about how the fire started,” Billhimer said in a statement.

The first suspect, 19-year-old Joseph Kling, was arrested on April 23 in connection with the Jones Road Wildfire, which ignited in Ocean Township on April 22, prosecutors said.

The fire was caused by “an improperly extinguished bonfire,” Billhimer said. Kling allegedly set wooden pallets on fire and then left when the fire wasn’t fully put out, Billhimer said.

As of Monday, the Jones Road Wildfire had burned about 15,300 acres, Billhimer said. The blaze was 75% contained as of Thursday, the New Jersey Forest Fire Service said.

On April 23, Kling was charged with arson and aggravated arson. On Thursday, he was charged with hindering apprehension for also allegedly giving false information to law enforcement, prosecutors said.

Kling is in custody at the Ocean County Jail and is due at a detention hearing on Friday.

The 17-year-old is being held at the Ocean County Juvenile Detention Center, prosecutors said.

ABC News’ Alexandra Faul contributed to this report.

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Trump says ‘going to be taking away’ Harvard’s tax exempt status

Trump says ‘going to be taking away’ Harvard’s tax exempt status
Trump says ‘going to be taking away’ Harvard’s tax exempt status
Mostafa Bassim/Anadolu via Getty Images

(WASHINGTON) — President Donald Trump on Friday renewed his threat to take away Harvard’s tax-exempt status.

“We are going to be taking away Harvard’s Tax Exempt Status. It’s what they deserve,” Trump wrote in a post to his conservative social media platform. He first floated the idea in mid-April.

Any attempt to do so, though, would likely face legal challenges.

A Harvard spokesperson told ABC News there’s no “legal basis” to rescind the university’s tax-exempt status and said it would endanger the school’s ability to carry out its mission.

“Such an unprecedented action would endanger our ability to carry out our educational mission,” the spokesperson said. “It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America.”

Trump has taken aim at the university after it said it would not comply with the administration’s series of demands, including actions on antisemitism and the use of DEI on campus.

The Trump administration has already frozen more than $2.2 billion in federal grants to Harvard, as well as $60 million in multi-year contract value to the institution. Harvard sued the administration in response, alleging the freeze violates the First Amendment and federal law.

Taking away the school’s tax-exempt status would be the latest escalation.

Federal law bars the president from directly or indirectly ordering the Internal Revenue Service (IRS) to conduct or terminate an audit or investigation.

Sources previously told ABC News that the IRS was considering revoking Harvard’s tax-exempt status. The White House said in a statement to ABC News in mid-April that any investigation by the IRS into Harvard began before President Trump began posting on his social media account that the school should lose its tax-exempt status.

Many major public and private colleges in the U.S. are exempt from federal income under Section 501(c)(3) of the Internal Revenue Code because of their educational mission, research and public service.

“The government has long exempted universities from taxes in order to support their educational mission,” the Harvard spokesperson said. “The tax exemption means that more of every dollar can go toward scholarships for students, lifesaving and life-enhancing medical research, and technological advancements that drive economic growth.”

ABC News’ Hannah Demissie, Katherine Faulders, Arthur Jones and Kelsey Walsh contributed to this report.

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Collections on defaulted student loans may affect millions of people’s credit scores

Collections on defaulted student loans may affect millions of people’s credit scores
Collections on defaulted student loans may affect millions of people’s credit scores
ayk7/Getty Images

(NEW YORK) — President Donald Trump’s administration is set to begin collecting defaulted student loan payments next week — which could harm the credit scores of millions of borrowers.

Roughly 5 million borrowers will have their university and college loans sent for collections beginning May 5, the Department of Education said last month.

When that happens, the borrowers’ credit scores could be impacted, since ratings agencies are often alerted when collections ensue, experts told ABC News.

Here’s what to know about the collections and what it could mean for borrowers’ credit scores:

Why are the credit scores of some student loan borrowers at risk?

Student loan borrowers are considered delinquent if they fail to make a loan payment for 90 days. When late payment stretches on for a total of 270 days, then the borrower falls into default. When a federal student loan enters default, the government can send it for collections, garnishing wages or even taking money from Social Security payments or tax refunds.

The risk to borrowers’ credit scores dates back to policy decisions made when former President Joe Biden’s administration resumed federal student loan payments after a period of relief that had been enacted during the COVID-19 pandemic.

When the Biden administration lifted the pause in the fall of 2023, the White House set in motion a 12-month moratorium. The administration did not count late payments toward delinquency. That moratorium ended in October — meaning borrowers could be considered delinquent if they didn’t make payments for more than 90 days, returning to the way the process worked pre-pandemic.

More than 9 million student loan borrowers will face “significant drops” in their credit score when delinquencies resume over the first half of 2025, the New York Federal Reserve found in March.

“These credit score effects show up with delinquencies – that’s when the credit score takes the hit,” Judith Scott-Clayton, a professor of economics and education at Teachers College, Columbia University, told ABC News.

Similarly, the Biden administration in 2023 initiated a one-year moratorium during which it would not report loan defaults to credit bureaus. That pause expired on Jan. 1.

Now, the Trump administration is set to begin collections on defaulted loans, causing further potential damage to credit scores, some experts told ABC News.

“The longer you remain delinquent, that will compound,” Kate Wood, a writer and spokesperson at NerdWallet, told ABC News.

How much do late college loan payments hurt a borrower’s credit score?

Late payments on a college loan can significantly hurt a borrower’s credit score, studies show.

The New York Federal Reserve found student loan delinquency causes a borrower with a credit score of 760 points or higher to lose 171 points on average, according to a study of loan data between 2016 and 2019.

Subprime borrowers with credit scores at or below 620 lose on average 87 points in the event of a student loan delinquency, the study said.

“The consequences are worse for those starting out with good credit scores,” Scott-Clayton said.

VantageScore, a credit-scoring system, said in February that late college loan payments can result in a credit score loss of up to 129 points. Student loan borrowers who make payments on time could see credit score increases of up to 8 points, VantageScore said.

What does a damaged credit score mean for borrowers’ finances?

Borrowers with lowered credit scores will face greater difficulty making big-ticket purchases like homes, cars or even refrigerators for which they may need to take out a loan, experts told ABC News.

When consumers with reduced credit scores seek a loan, they face higher interest rates as banks determine that the borrower risks an inability to repay.

“We’re talking about a chunk of the population who won’t be able to buy a car because they won’t be able to get access to a car loan or it will be prohibitively expensive,” Kirabo Jackson, a professor of education and social policy at Northwestern University, told ABC News.

A lower credit score can even jeopardize an individual’s job prospects, since some employers check an applicant’s credit, Jackson said.

Some states restrict an employer’s ability to check an applicant’s credit, including California.

The damage to borrower’s credit scores may cause a hiccup in the overall economy, since some individuals may forgo big purchases, Jackson said.

“It’s not a huge effect for the economy but it certainly won’t be helpful,” Jackson said. “And when you talk about the impact for the individuals, it will be quite considerable.”

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