Student loan delinquency rates have reached a five-year high in early 2025, with over 10% of balances and roughly 6 million borrowers past due or in default. This surge in delinquencies follows the expiration of pandemic-era relief measures. Despite the increase in student loan delinquencies, overall household debt delinquency rates for credit card debt and auto loans have stabilized. The Treasury Department has begun collection efforts for defaulted loans, including garnishment of wages, tax returns, and Social Security payments, affecting millions of borrowers. This development highlights the potential widespread economic impact of the student loan crisis.
Source: https://www.axios.com/2025/05/13/student-loan-debt-delinquent-payments