Student loan delinquencies are climbing to levels not seen in over two decades, raising concerns for millions of borrowers across the country. The percentage of student loan balances overdue by 90 days or more has surged, with roughly 10.2% of total student debt now in serious delinquency as of the second quarter of 2025. This rate is significantly higher than it was before the pandemic, when the moratorium on payments kept delinquencies artificially low.

The recent spike can be traced back to the end of the pandemic-era payment pause. As repayment requirements resumed, many borrowers found themselves unprepared to manage their monthly obligations after several years without payments. Compounding the issue, missed payments from 2020 through late 2024 are now appearing on credit reports, causing further damage to borrowers’ financial profiles.

Age also plays a major role in this trend. Borrowers aged 50 and above have the highest rates of serious delinquency, reaching around 18%. The 40-49 age group follows at nearly 14%, while younger borrowers are delinquent at lower rates, although no age group is immune from rising pressures.

The total student loan debt has reached $1.64 trillion, an all-time high, highlighting the scale of the issue. Millions of Americans are not just behind on payments—they are on the brink of default, which could result in severe credit consequences and the start of collection activities.

Worsening delinquency rates threaten not just individual borrowers’ financial stability, but also the broader economy. As this crisis unfolds, it underscores the urgent need for both policy solutions and borrower support systems to help those struggling to regain their footing after years of financial uncertainty.