The United States is experiencing a significant rise in student loan delinquencies as the pandemic-era relief period comes to an end. According to the New York Fed Consumer Credit Panel, 8.0% of student loans transitioned into serious delinquency (90+ days past due) in Q1 2025—up sharply from just 0.8% in Q4 2024. This is the highest delinquency rate since 2020.
The data shows that the burden of student loan repayment has long affected borrowers across all age groups, but the recent spike is widespread:
Borrowers aged 50+ are the most severely affected, with around 11.0% of their balances seriously delinquent in Q1 2025—the second-highest share in the last two decades. Historically, this age group has seen a steady climb in delinquency rates, peaking around 10% in 2013-2014, before declining until the pandemic pause.
Borrowers aged 40–49 have consistently had the highest delinquency rates prior to the relief period, often above 12%, peaking near 13.5% in 2012. After a gradual decline and then a complete drop to near-zero during the relief years, delinquency spiked again to nearly 10% in Q1 2025.
Borrowers aged 30–39 also saw rates climb steadily from around 9% in 2004 to about 11% in the mid-2010s, stabilizing between 9% and 10% through 2019. After dropping during the pause, they’ve jumped back to over 9% in 2025.
Borrowers aged 18–29 generally had lower rates than older groups but still saw growth from 3% in 2004 to nearly 8% by 2013. Their rates dropped more sharply during the pause and have now risen back to around 6.5%.
Across all age groups, delinquencies dropped to near-zero from 2020 to 2022 due to the federal forbearance and relief programs. However, since the end of these programs, all groups are seeing a synchronized and rapid increase in delinquencies.
Currently, over 10% of student loan balances, impacting approximately 6 million borrowers, are either past due or in default. Among those required to make payments, 24.0% were behind on their loans in Q1 2025, exceeding the 22.0% level seen in Q1 2020.
This data confirms a troubling resurgence in student loan distress across the country, with older Americans facing particularly acute pressure and younger borrowers not far behind. As payments resume, the burden of educational debt is once again becoming a major financial challenge for millions.
Source: New York Fed Consumer Credit Panel / Equifax
