3 sources·Business

Student Loan Borrowers Face Increased Delinquency as Payment Pause Ends and IDR Applications Resume

Approximately 9.7 million borrowers fell past due on student loans post-payment pause, while access to income-driven repayment programs has been restored.

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  2. Over 9 million student loan borrowers past due after bills restarted, Fed estimates

    By the end of the off-ramp period, the New York Fed estimates that the volume of past-due federal student loans hit 15.6%, with more than $250 billion in delinquent debt.

    Over 9 million student loan borrowers past due after bills restarted, Fed estimates

    NBC NewsNBC News·25d
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    This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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  1. Business Insider
  2. NBC News
Updated: Mar 26th, 2025, 6:18 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

Following the end of the Covid-era student loan payment pause, about 9.7 million borrowers are now delinquent. The New York Fed warns that delinquency rates could exceed pre-pandemic levels, as borrowers’ credit health declines. Meanwhile, the Department of Education announced the reopening of applications for various income-driven repayment plans after a pause due to a legal ruling against the Biden administration's SAVE plan. While applications are available, loan servicers have not yet resumed processing them, leaving borrowers in uncertainty regarding their repayment options.

Perspectives

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  • Student loan delinquency is on the rise, with estimates indicating that 15.6% of federal student loans are past due as of the end of the off-ramp period

  • Access to student loan repayment programs has been restored after a temporary pause due to legal challenges against the Biden administration's initiatives

  • Legal and administrative decisions regarding income-driven repayment plans have created uncertainty for borrowers, impacting their financial stability.

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