Key facts
- Approximately 9.5 million federal student loan borrowers are in default, more than nine months behind on payments.
- This represents a significant increase from 5.3 million borrowers before the end of the pandemic-era payment pause and grace period.
- The Trump administration has made changes to income-driven repayment plans, potentially increasing monthly payments for borrowers.
- Mississippi has the highest student loan default rate in the U.S. at 28.3%.
- Borrowers who attended for-profit colleges are more than twice as likely to be delinquent on their loans compared to those who attended public institutions.
Student loan defaults have surged to record levels in the United States, with approximately 9.5 million borrowers now more than nine months behind on their payments. This spike follows the end of pandemic-era payment suspensions and a subsequent grace period in late 2024. The total amount of federal student loans in default has reached $233.3 billion out of $1.7 trillion outstanding.
Advocates attribute the rise in defaults to borrowers struggling with rising costs and the return of student loan bills. The Trump administration's overhaul of the federal student loan system has also eliminated some income-driven repayment plans, potentially increasing monthly payments for millions of borrowers.
States in the South, including Mississippi with the highest default rate at 28.3%, have a high concentration of defaulted borrowers. Puerto Rico also reported a high default rate of 30.9%. Students who attended for-profit colleges are disproportionately affected, with 33% of these borrowers being 90 days or more behind on payments, more than double the rate for those who attended public schools.