Student Loan Defaults Surge As Treasury Assumes Collections

Federal student loan debt has resumed growth, rising to nearly $1.7 trillion across 42.8 million Americans, with an average balance of $40,000. Serious delinquencies have climbed to 10.3%, while 22% of borrowers are now in default and almost 40% are in delinquency or default. The data points to worsening household credit stress and potential policy pressure around student loan repayment.

Analysis

Federal student loan debt has resumed growth, rising to nearly $1.7 trillion across 42.8 million Americans, with an average balance of $40,000. Serious delinquencies have climbed to 10.3%, while 22% of borrowers are now in default and almost 40% are in delinquency or default. The data points to worsening household credit stress and potential policy pressure around student loan repayment.