US Student Loan Defaults Soar to 9.2 Million as 4-Year Collections Pause Ends
Updated
Updated · Bloomberg · Jun 18
US Student Loan Defaults Soar to 9.2 Million as 4-Year Collections Pause Ends
2 articles · Updated · Bloomberg · Jun 18
Summary
About 9.2 million US student loan borrowers were in default in April, up from 7.7 million in December 2025 and 6 million in August 2025, Education Department data released Thursday showed.
The jump followed the end of a four-year federal collections pause that had been put in place during the Covid pandemic.
Roughly 20% of the 43 million Americans with student debt are now more than a year behind on payments.
Another 3 million borrowers are already 90 days delinquent, pointing to further repayment stress beyond those already in default.
Experts compare student debt to the 2008 housing crisis. Are we now facing another nationwide economic meltdown?
With the SAVE plan dismantled, what can prevent a second, even larger wave of student loan defaults from hitting the economy?
Will the Treasury's takeover of defaulted loans fix the crisis, or is the system fundamentally broken?
Student Loan Defaults Hit 5.5 Million in 2026: Inside the Crisis and What Comes Next
Overview
In early 2026, the federal student loan crisis reached a new peak as defaults and delinquencies surged to record highs. This escalation followed the end of the pandemic-era payment pause, which steadily increased financial strain on borrowers. Older borrowers, especially those aged 50 and above, were hit hardest, with many falling into serious delinquency. The crisis is expected to worsen after a federal court ruling ended the SAVE repayment plan, forcing nearly seven million borrowers to resume payments with added interest. These developments highlight a deepening crisis that now affects people nearing retirement, not just recent graduates.