Today, the feds start collecting on 5 million+ defaulted student loan borrowers with collections.
We have a 20.5% delinquency rate (90 days+) – highest ever recorded (TransUnion)
Tax refunds will be seized through the Treasury Offset Program.
Social Security benefits cut by up…
— Amanda Goodall (@thejobchick) May 5, 2025
More Than Half of Subprime Federal Student Loan Borrowers With a Payment Due Were 90+ DPD pic.twitter.com/HfsBIAfW27
— Amanda Goodall (@thejobchick) May 5, 2025
About 4 million, or roughly one in five, federal student loan borrowers with a payment due are seriously delinquent, according to a new analysis published Monday by TransUnion.
Research from the information and insights company suggests that a significant number of Americans with student loan debt are not able to make payments, did not know payments were due or decided not to pay.
The findings come as the Department of Education has vowed to restart collecting federal student loans in default starting Monday following a Covid-era pause.
TransUnion found that as of February, a record 20.5% of student loan borrowers with a payment due are “seriously delinquent,” which is defined as 90 days or more past due. (The analysis only includes federal student loan borrowers and only those who are not in forbearance or deferment.)
It’s a sharp jump from February 2020 — just before the start of the pandemic — when 11.5%, or about 2.6 million, were seriously delinquent.
The previous record was set in September 2012 when 15.4%, or about 3.3 million, borrowers were 90 days or more past due.
The TransUnion analysis did not determine why a growing share of borrowers are behind on student loan debt.
TransUnion cautioned that its finding of one in five student loan borrowers seriously delinquent may actually understate the problem due to the complexity of the issue. The company said that some borrowers appear to be 90 days or more past due but have not yet been reported as seriously delinquent, likely because they are exploring repayment programs and other options.
https://lite.cnn.com/2025/05/05/business/student-debt-collections-delinquent