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Student Loan Delinquency Soars to 16.19% by 2025

2/12/2026

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Story summary
  • The New York Federal Reserve reports serious student loan delinquency reached 16.19% by the end of 2025, up from 0.7% a year earlier.
  • As of September 30, 2025, 5.2 million Americans were in default on federal student loans.
  • Under U.S. President Donald Trump, the administration tightened repayment options, despite the Biden administration's relief efforts.
  • The Education Department has paused efforts to seize wages and tax refunds from borrowers in default.