Millions of student loan borrowers fell into default in early 2026, New York Fed finds |
Millions of student loan borrowers fell into default in early 2026, New York Fed finds
The defaults were concentrated among older borrowers, those in Southern states, and people not behind on loans before the pandemic
The Federal Reserve Bank of New York reported Tuesday that about 2.6 million student loan borrowers who were more than 120 days past due had their loans transferred to the U.S. Department of Education's Default Resolution Group in the first quarter of 2026.
The student loan delinquency rate rose to 10.3% of balances that were 90 or more days overdue, up from 9.6% at the end of 2025. The rate of student loans moving into serious delinquency, measured as a four-quarter moving sum, fell to 10.9% in the first quarter from 16.2% in the........