$180 Billion in Student Loans Are Now in Default, New Federal Data Shows

Federal Student Aid released its latest quarterly data update, and the numbers paint a stark picture: 7.7 million borrowers with $180 billion in outstanding federal student loans are now in default as of December 2025.

The quarter ending in December marked the first time many borrower accounts could the threshold for default following the end of the pandemic-era payment pause and the subsequent on-ramp protection period.

While the number is large, FSA noted that it mirrors the default count from December 2019, when 7.7 million recipients with approximately $168 billion in federal student loans were in default. The $12 billion increase in default balances reflects the growth in the overall portfolio during the intervening years.

However, the Department of Education has still continued to pause some collections efforts in light of all the major student loan changes happening.