Student Loan Delinquencies Hit 20-Year High in 2025: What Borrowers Need to Know
Student loan delinquencies have reached a 20-year high in 2025, with over 31% of federal student loan borrowers reported as 90 or more days past due. This sharp rise follows the end of the pandemic-era repayment moratorium and the resumption of federal collection activities, resulting in millions of borrowers being at risk of default. Outstanding student loan debt hit $1.64 trillion in the second quarter of 2025, with delinquency rates particularly high among borrowers aged 40 and above. The increasing delinquency rates are impacting credit scores for millions and signal growing financial challenges for student loan borrowers nationwide. Understanding the current trends, consequences, and options for managing delinquency and default is essential for protecting credit health and navigating repayment in the evolving loan landscape.


