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Fact Sheet: Student Debt Default Crisis By the Numbers The data underscore how default has disastrous consequences for borrowers and their families For many, default is a lifetime sentence, and America’s most vulnerable communities—older, low-income, borrowers with disabilities, and Black borrowers—are disproportionately impacted
Student Loan Default: What to Know As Collections Restart Default typically occurs when you fail to make a student loan payment for 270 days The U S Department of Education recently resumed collections on defaulted federal student loans, which can
Key Facts About Student Loan Default as Payment Pause Nears End After a pause of more than three years, repayment on federal student loans will resume this fall and many borrowers are at risk of falling into a cycle of delinquency and default unless the U S Department of Education changes outdated repayment and collections rules
The Student Loan Default Divide: Racial Inequities Play a Role Over the past 20 years, half (50%) of Black and 2 out of 5 (40%) Hispanic or Latino student loan borrowers have had a loan default, compared with less than a third (29%) of White borrowers
Student Loans the One Big Beautiful Bill Act The recent passage of the One Big Beautiful Bill Act (OBBB) has fundamentally transformed the landscape for existing student loan borrowers, creating both new challenges and opportunities for those currently managing debt Understanding how to navigate these changes while dealing with existing repayment obligations has become critical for millions of Americans facing an unprecedented default
Project MUSE - A Crisis in Student Loans?: How Changes in the . . . This paper examines the rise in student loan default and delinquency It draws on a unique set of administrative data on federal student borrowing matched to earnings records from de-identified tax records