New Data: 5.4 Million Student Loan Borrowers Delinquent On Their Loans

Federal student loan borrowers are under intense financial strain as serious delinquencies hover near record levels, according to new data released by TransUnion this week.

In July 2025, 29% of federal student loan borrowers in repayment, or about 5.4 million people, were at least 90 days behind on payments. While this figure is slightly lower than the April 2025 peak of 31%, it marks the fifth consecutive month with more than five million borrowers past due.

The modest improvement suggests that some households are managing to catch up, but the overall level of delinquency remains historically high. For comparison, delinquency rates prior to the pandemic hovered around 10% to 15%, depending on income and loan type, according to The College Investor's Student Loan Statistics.

“While the percentage of federal student loan borrowers who are seriously delinquent has slightly subsided in recent months, it continues to remain decidedly elevated,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, in a statement. 

The proportion of borrowers in serious delinquency is extremely elevated, and once they reach 270 days, they will be in default and face wage garnishments, tax offsets, and more. This comes right before tax season, when millions of Americans will be depending on their tax refunds.