Record-breaking student loan delinquency rates emerge in the last two decades, as the COVID-19 relief measure on loan repayments gradually lifts.
In a recent report by the Federal Reserve Bank of New York, it has been revealed that the resumption of student loan repayments has led to a significant increase in delinquent student loans.
Prior to the pandemic, the serious student loan delinquency rate hovered around 9-10% from 2012 up until early 2020. However, in the second quarter of 2025, this rate rose to 10.2%, with borrowers between the ages of 30 and 39 experiencing a slightly higher rate of 11%.
The New York Fed's Center for Microeconomic Data reported a sharp rise in the number of student loans transitioning into serious delinquency. This trend continued into the older age groups, with borrowers aged 40 to 49 seeing a rate of nearly 14%, and those 50 and up experiencing a rate of roughly 18%.
The total amount of outstanding student loan debt also increased in the second quarter of 2025, rising by $7 billion to reach $1.64 trillion. This figure represents an increase of $27 billion in credit card debt, which rose to $1.21 trillion during the same period.
Auto loan borrowing also saw an increase, with a $13 billion rise to $1.66 trillion in the second quarter. Some of this rise in auto-related borrowing was tied to an uptick in car buying to get ahead of tariff-related price increases.
The youngest cohort of borrowers in the 18-29 age range had the lowest rate of transitioning into serious delinquency at more than 8%. Despite economic uncertainty, Americans seem to be holding steady, according to LendingTree chief consumer finance analyst Matt Schulz.
However, the impact of the federal repayment restart has been substantial, according to Schulz. The share of student loan debt entering serious delinquency (90 days or more late) jumped to 12.9% at the end of June. This rise in delinquency rates can be attributed in part to the resumption of reporting missed federal student loan payments to credit bureaus.
Interestingly, there are no specific publicly available statistics on the number of student loans in Germany that are 90 days or more overdue.
This report was contributed by Reuters.
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