Student loan defaults hit 8.8 million borrowers
Federal data shows 8.8 million people are at least 270 days behind on federal student loans, with $208 billion in debt in default; the Education Department has paused involuntary collections and plans relief measures starting in July.
- 8.8 million borrowers are at least 270 days behind and $208 billion of federal student loan debt is in default.
- A new borrower entered default every nine seconds on average over the past year.
- $92 billion of the defaults occurred since January 2025 and total student loan debt reached $1.66 trillion by the end of 2025.
- More than 8 million borrowers had their credit scores affected in 2025 after falling more than 90 days behind.
- The Department of Education paused wage garnishments and tax refund seizures on Jan 16 and will introduce measures in July to stop interest for on-time payments and offer ways to rebuild credit.