US EditionStudent loan delinquencies surge back after 5-year pause
- As of February 2025, over one-fifth of individuals with federal student loans had fallen behind on payments by at least 90 days after repayment obligations restarted in September 2023 following a nearly five-year suspension.
- This rise in delinquencies occurred as a result of the pandemic-era moratorium ending, a gradual payment on-ramp completing in late 2024, and the resumption of credit reporting in October 2024.
- The New York Federal Reserve reported that 8.04% of borrowers entered serious delinquency in the first quarter of 2025, with collections restarting on May 5, including wage garnishments and federal benefit seizures for defaulters.
- Credit scores for millions of borrowers have declined sharply due to defaults, with average decreases of 63 points and potential drops up to 171 points, leading to higher interest rates and reduced opportunities for obtaining mortgages and auto loans.
- The surge in delinquencies signals greater financial strain for borrowers requiring lifestyle changes to maintain creditworthiness for major goals like buying homes or vehicles in the near future.
19 Articles
19 Articles
Student debt in the U.S. still has these “saved”
The student debt in the United States encompasses the money that millions of people borrow to pay for their higher education (university, postgraduate, etc.). And while this type of liability became a national problem by its magnitude, now the Donald Trump administration left few “alives” in effect due to its new determinations.Why are there so many people with student debt in the United States? According to estimates by the U.S. Department of E…
NY Fed: Student loan borrowing trouble surged in first quarter
U.S. student loan borrowers ran into trouble during the first quarter after the government lifted a long-running moratorium on debt repayment implemented during the COVID-19 pandemic, a report from the Federal Reserve Bank of New York said on Tuesday.
The number of student-loan borrowers falling behind on payments surged this year — and they're at greater risk under Trump's collections restart
The New York Federal Reserve found a surge in student-loan borrowers behind on payments.Getty ImagesThe New York Federal Reserve found that the share of delinquent student-loan borrowers surged.In the first quarter of 2025, 8.04% of borrowers transitioned to serious delinquency, up from 0.8% a year prior.It's largely a result of the end of the five-year pause on credit reporting for borrowers behind on payments.Millions of student-loan borrowers…
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