A wave of student loan borrowers have entered default since pandemic-era protections lapsed
Summary
Student loan defaults in the United States have reached their highest levels as loan payments resumed after a pause during the COVID-19 pandemic. About 9.5 million borrowers, or 20%, are now more than nine months behind on their federal student loan payments.Key Facts
- Student loan defaults have increased sharply across the U.S.
- Payments were paused during the COVID-19 pandemic to help borrowers.
- The pause on payments has ended, causing many to fall behind.
- Approximately 9.5 million borrowers are currently in default.
- Being in default means not paying the loan for over nine months.
- One in five federal student loan borrowers are affected.
- This is the highest default rate recorded in recent history.
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