Summary
A new report shows that more than 25% of people with student loans in several U.S. states are not keeping up with payments. The problem increased after pandemic protections ended and new policies started under President Donald Trump. States in the South and Southwest have the highest default rates.
Key Facts
- Over 25% of student loan borrowers are behind on payments in some states.
- Default can lead to wage garnishment and seizure of tax refunds.
- 7.9 million borrowers became delinquent in the first three quarters of 2025.
- New Mexico has the highest rate of borrowers behind on payments at 29.63%.
- Massachusetts has the lowest delinquency rate at 13.83%.
- A new Repayment Assistance Plan (RAP) will replace several current repayment plans starting July 1, 2026.
- RAP will base payments on adjusted gross income, with options for principal reductions and potential loan forgiveness after 30 years.
