Summary
A new report shows that about 25% of student loan borrowers in the U.S. have become delinquent on their payments. This represents a significant increase from pre-pandemic times and has affected millions of borrowers' financial standing, leading to potential risks like wage garnishment.
Key Facts
- About 25% of student loan borrowers have missed payments, nearly three times the rate from 2019.
- There are roughly 42 million people in the U.S. who owe student loans.
- About 9 million borrowers are in default, which means they have failed to make payments for a long time.
- Default can lead to wage garnishment and the government taking tax refunds.
- The Education Department paused income-driven repayment application for three months in early 2025.
- High nonpayment rates could mean colleges may lose access to federal aid programs.
- A new repayment plan will start on July 1, 2026, requiring borrowers to adapt to avoid moving to a Repayment Assistance Plan.
