Apparently ethnic studies degrees from an Ivy League school don't pay very well. Go figure. If only they went to the Economic School of Buck and speculated on Sugar Bowl tickets.
https://lite.cnn.com/2025/05/05/business/student-debt-collections-delinquent
Federal student loans are due again. A record percentage of borrowers are seriously delinquent
By Matt Egan, CNN
Updated: 2:17 PM EDT, Mon May 5, 2025
Source: CNN
About 4 million, or roughly one in five, federal student loan borrowers with a payment due are seriously delinquent, according to a new analysis published Monday by TransUnion.
Research from the information and insights company suggests that a significant number of Americans with student loan debt are not able to make payments, did not know payments were due or decided not to pay.
The findings come as the Department of Education has vowed to
restart collecting federal student loans in default starting Monday following a Covid-era pause.
TransUnion found that as of February, a record 20.5% of student loan borrowers with a payment due are “seriously delinquent,” which is defined as 90 days or more past due. (The analysis only includes federal student loan borrowers and only those who are not in forbearance or deferment.)
It’s a sharp jump from February 2020 — just before the start of the pandemic — when 11.5%, or about 2.6 million, were seriously delinquent.
The previous record was set in September 2012 when 15.4%, or about 3.3 million, borrowers were 90 days or more past due.
The TransUnion analysis did not determine why a growing share of borrowers are behind on student loan debt.
TransUnion cautioned that its finding of one in five student loan borrowers seriously delinquent may actually understate the problem due to the complexity of the issue. The company said that some borrowers appear to be 90 days or more past due but have not yet been reported as seriously delinquent, likely because they are exploring repayment programs and other options.
The Covid-era pause on federal student loan payments
ended in September 2023, and borrowers were shielded from the negative effects of a missed payment until October 2024.
Some student loan borrowers “may be overstretched” and face a “difficult financial situation,” Michele Raneri, vice president and head of US research and consulting at TransUnion, told CNN.
Indeed, 50.8% of subprime federal borrowers with past-due payments are considered seriously delinquent.
“Borrowers who have not been repaying will likely have to make a number of challenging budgeting decisions,” Raneri said.
Raneri cautioned that while some borrowers may be unable to pay, others may not know payments have resumed or even know how to make the payments. Others, she said, simply may not be willing to pay.
No matter the reason, falling behind on student loan debt is costly.