Student loan defaults hit record highs in wake of COVID-tied payments pause expiration - CBS News

What the report says

CBS News reported that federal student loan defaults have climbed to record levels after pandemic-era repayment protections expired. About 9.5 million people, or roughly one in five federal student loan borrowers, are now in default, defined as being more than nine months behind. The rise follows the resumption of payments in 2023 and the end of a Biden administration “on-ramp” period in fall 2024 that temporarily prevented loans from being pushed into default.

According to data from the Office of Federal Student Aid cited in the report, the number of borrowers in default rose from 5.3 million to about 9.5 million after defaults began registering again in June 2025. Of the $1.7 trillion in federally backed student debt, $233.3 billion is now in default. Default can carry more severe consequences than delinquency, including possible wage or Social Security garnishment, though CBS News reported that the Trump administration has not yet resumed those involuntary collections.

The report also noted concern that defaults could continue to rise as the Trump administration ends the SAVE income-driven repayment plan and narrows repayment options for new borrowers. The Education Department has described the changes as a way to simplify a confusing system, while borrower advocates warn that higher monthly bills may strain households already facing other costs.

An AP analysis cited by CBS News found that many states with the highest default rates are in the South, with Mississippi highest among states at 28.3%, while Puerto Rico’s rate was 30.9%. Borrowers who attended for-profit colleges were also more likely to be behind, with federal data showing 33% were at least 90 days late, more than double the rate for borrowers from public schools.