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Student Loan Delinquencies Surge: Mississippi Hits 45% Rate

5/27/2025

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Summary

Story summary

Student loan delinquencies are sharply rising in the U.S., especially in Southern states, with Mississippi at 45%.
The end of federal protections has resulted in a surge of borrowers 90 days late on payments, negatively impacting credit scores.
Early 2023 saw approximately 5.6 million borrowers newly delinquent, straining personal finances and the economy.
The federal government may garnish wages from delinquent borrowers, exacerbating financial burdens amid inflation.
Economists forecast a potential 0.1% GDP decrease due to increased loan payments affecting consumer spending.

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Story summary

Student loan delinquencies are sharply rising in the U.S., especially in Southern states, with Mississippi at 45%.
The end of federal protections has resulted in a surge of borrowers 90 days late on payments, negatively impacting credit scores.
Early 2023 saw approximately 5.6 million borrowers newly delinquent, straining personal finances and the economy.
The federal government may garnish wages from delinquent borrowers, exacerbating financial burdens amid inflation.
Economists forecast a potential 0.1% GDP decrease due to increased loan payments affecting consumer spending.