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Over 9 million student loan borrowers past-due after bills restarted, Fed estimates
CNBC ^ | 03/26/2025 | Annie Nova

Posted on 03/26/2025 7:43:44 AM PDT by millenial4freedom

Around 9.7 million student loan borrowers became past-due on their bills after the Covid-era payment pause expired, according to a new estimate by the Federal Reserve Bank of New York.

After the Covid-era pause on federal student loan payments expired in September 2023, the Biden administration offered borrowers a 12-month “on-ramp” to repayment. During that time, borrowers were shielded from most of the consequences of falling behind on their payments. That relief period expired on Sept. 30, 2024.

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 over $250 billion in delinquent debt.

“According to these numbers, it is reasonable to expect student loan delinquency to surpass pre-pandemic levels when new delinquencies hit credit reports,” the Fed’s report says.


TOPICS: Business/Economy; Chit/Chat; Education; Miscellaneous
KEYWORDS: college; education; millenials; trump
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would love to see Trump make professor salaries proportional to the credit scores of their graduates! Liberals love price controls, so why wouldn't they mind price controls on professor salaries/university costs?
1 posted on 03/26/2025 7:43:44 AM PDT by millenial4freedom
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To: millenial4freedom

Around 9.7 million student loan borrowers became past-due on their bills after the Covid-era payment pause expired,


how many were past due before?


2 posted on 03/26/2025 7:46:59 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued, but there must be a warehouse full of them somewhere)
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To: millenial4freedom

These are the Kamala voters you see showing up the Republican town halls screaming like banshees and Sanders and Sandy puppet shows attendees who tell the “media” they “voted for Trump.”


3 posted on 03/26/2025 7:48:34 AM PDT by FlingWingFlyer (Bureaucratic District "Judges" are the greatest threat to America and Americans.)
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To: millenial4freedom

4 posted on 03/26/2025 7:51:31 AM PDT by Magnum44 (...against all enemies, foreign and domestic... )
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To: millenial4freedom

This is gonna put a dent in EuroPeon tourism. A lot of pubs will be going broke without all these “students” over there galivanting around the countryside. LOL!


5 posted on 03/26/2025 7:56:07 AM PDT by FlingWingFlyer (Bureaucratic District "Judges" are the greatest threat to America and Americans.)
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To: millenial4freedom

Ah time for the Karens to pay the piper. Btw, this could be solved by making university endowments pay for this.


6 posted on 03/26/2025 7:59:05 AM PDT by KC_Conspirator
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To: millenial4freedom

No one has clearly explained how government can mandate a pause on paying back a debt where the borrowers freely signed that paperwork in the contract. Somehow the lenders are supposed to absorb the loss ? Fascinating……..,


7 posted on 03/26/2025 7:59:52 AM PDT by The Sentient Sheep
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To: millenial4freedom

Another Govt eff up. Universities and colleges jacked up the costs of tuition because they could get paid while sticking it to the students and ultimately the taxpayers if those loans go into default. So many worthless degrees too plus a portion of the student loans never result in completion of degrees. What a racket.


8 posted on 03/26/2025 8:01:41 AM PDT by tflabo (Truth or tyranny)
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To: millenial4freedom

Try this with income taxes and see what happens ...


9 posted on 03/26/2025 8:03:00 AM PDT by glennaro (2025: The year of America's rebirth as a Great (and Free) Republic)
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To: millenial4freedom

I paid every dime of my student loans and the government got a good deal out of it with the increase in taxes I paid as a result.


10 posted on 03/26/2025 8:03:13 AM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: millenial4freedom

Nobody talks about the obvious. The money students borrowed was paid to the colleges and universities who are SITTING ON BILLIONS IN ENDOWMENTS.

MAKE THE COLLEGES REPAY THE DELINQUENT STUDENT LOANS...NOT THE TAXPAYERS. THE COLLEGES HAVE A MOUNTAIN OF MONEY !


11 posted on 03/26/2025 8:03:42 AM PDT by Gnome1949
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To: millenial4freedom

Hey HEY, kids!...Go back to Sesame Street!


12 posted on 03/26/2025 8:05:19 AM PDT by equaviator (If 60 is the new 40 then 35 must be the new 15.)
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To: millenial4freedom

People who pay off their student loans feel like idiots every time a president forgives those loans. The people with loans are conditioned to wait because eventually, those loans will be forgiven. But loans paid off will not be refunded. That’s where we are. It will remain thus until collectors start showing up at their door, seizing bank accounts and garnishing wages.


13 posted on 03/26/2025 8:07:02 AM PDT by Gen.Blather (I had a tagline and I dropped it. The cat back-pawed it under the Barcalounger. )
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To: millenial4freedom

Golly. I thought lunch bucket Joe waived all those debts.


14 posted on 03/26/2025 8:12:17 AM PDT by Sir Bangaz Cracka (Poor 'lil Travon bees slamming dat white cracka'a head into dat sidewalk causin he be scared)
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To: PeterPrinciple

This link is in the attached article.

The second chart and accompanying paragraphs indicatie the delinquency rate was about 14-15% before the world wide kerfuffle.

https://libertystreeteconomics.newyorkfed.org/2025/03/credit-score-impacts-from-past-due-student-loan-payments/


15 posted on 03/26/2025 8:13:03 AM PDT by Steven Scharf
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To: The Sentient Sheep

there are no lenders anymore, the government under Obama took over all the loans from lenders.


16 posted on 03/26/2025 8:23:47 AM PDT by TexasFreeper2009
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To: TexasFreeper2009

Hold them accountable. Seize their assets. Pathetic bums with no integrity and worthless degrees.


17 posted on 03/26/2025 8:51:26 AM PDT by hal ogen (First Amendment or Reeducation Camp?)
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To: millenial4freedom

They should all organize, get together and stop paying.

Let the universities/faculties pay for those worthless degrees.


18 posted on 03/26/2025 9:45:16 AM PDT by Az Joe (We can't spare President Trump; He fights!)
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To: millenial4freedom

So invalidate their degrees.....🤔


19 posted on 03/26/2025 9:46:16 AM PDT by rktman (Destroy America from within ? Check! WTH? Enlisted USN 1967 to end up with this💩? 🚫💉! 🇮🇱👍!)
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To: The Sentient Sheep
No one has clearly explained how government can mandate a pause on paying back a debt where the borrowers freely signed that paperwork in the contract. Somehow the lenders are supposed to absorb the loss ? Fascinating……..,

The student loan forbearance was passed to allow the borrowers to kick the can down the road during covid for people that were/are still on the hook for the loans. It gave some relief to people that lost jobs because of mandatory government shutdowns. My take is that people who didn't lose their jobs should have continued to pay back the loans.

20 posted on 03/26/2025 9:50:42 AM PDT by EVO X ( )
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