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Posted on 05/05/2025 12:11:08 PM PDT by DFG
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.
ransUnion 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.
The Covid-era pause on federal student loan payments ended in September 2023, and borrowers were shielded from the negative effects of a missed payment until October 2024.
(Excerpt) Read more at cnn.com ...
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Joe told them not to worry about it.
Federal student loans have turned into such a racket. A subsidy to prop up insanely Woke university departments that would not survive in the market. The students should not be let off the hook, but they aren’t the main villains in this story; the universities, their cronies in Congress and their lobbyists are.
Damn....my kids paid off all their student loans. And then they even got good jobs in their field.
The universities should be taking these loan losses, Democrats knew many would default so they used the govt to loan the money, of course.
Universities should be the only bodies allowed to issue student loans. Put the school at risk in the event of non-payment. This provides an incentive not to give loans for Lesbian Dance Theory degrees or loans to students who will clearly never complete a degree of any kind.
A record percentage of borrowers are seriously delinquent.
Time to call the repo department asap examples must be made.
100%. borrowers are rational. the Dems set the expectation that free money was coming from the Federal Money Tree so who in their right mind wouldn’t stop paying. whoops!
Reinstate the GSLs Joe had no legal authority to “forgive”.
Taxpayers didn’t sign their loan docs, suck it up buttercups. Welcome to adulthood and self responsibility.
Won’t effect me at all. I’m paying and am on time and current. 😊
RE: seriously delinquent
Time for a remake of the Jerry Lewis comedy:
Too broke to pay their agreed upon student loans.
West Side Story delinquent’s excuse he heard from trendy TV psychologists:
“I’m depraved on accounta I’m deprived.”
Send them some taxpayer money, someone.
There is no reason why the taxpayers should be made to pay these loans.
I almost agree with you, but I'd say it more like get the govt out of the student loan business (and college altogether) and let the free market decide. If a school decides to loan to a student, fine. Also if a bank or an employer wants to loan to a student, fine. It's between them and the student on if whatever education is valuable.
“And then they even got good jobs in their field.”
But I can’t. I went through four years to get my BA in Gay and Lesbian Studies then another two years getting my MA in Intersectional Gender Studies.
It’s like $250,000 down the drain. All those parades, the demonstrations, shaming students for using misgendering pronouns, making TikToks of my mental breakdown when Trump was elected, etc.
I was working as a counselor, part time, for transgender/questioning three year olds at a local day care.
Then Trump cut our funding and I’m out a job.
/sarc
“Universities should be the only bodies allowed to issue student loans. Put the school at risk in the event of non-payment. This provides an incentive not to give loans for Lesbian Dance Theory degrees or loans to students who will clearly never complete a degree of any kind.”
I agree.
My education was mostly paid by VA and employer tuition
re-imbursement. I had to covers costs they did not, books lab fees, et al.
And you had to get good grades or they didn’t pay.
Boeing demanded a minimum of a “B” grade in every class and VA wanted at least a passing grade. Not all classes are ABC.. Many were pass/fail.
You failed YOU PAY! That is called incentive. I took many $1000 final exams.
I went to private universities so they have a lot of incentive to accept students they think will succeed
and then educate the students so they will succeed
in their chosen professions.
They go out of business if nobody wants to hire their students.
Public universities don’t give a shit, all they want to do promote their progressive agenda. “John Q Public” will foot the bill.
“I spent $175,000 to learn how to become a deadbeat with a PhD.”
I paid every dime off, this makes me furious.
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