Roughly a million borrowers defaulted on their federal student loans late last year, with millions delinquent on their payments and sliding toward the same fate. That’s according to federal data and the latest Household Debt and Credit Report from the Federal Reserve Bank of New York, which dropped on Tuesday. The report includes student loan data as of the end of 2025.
Student loan delinquencies have continued to worsen, said New York Fed researchers on a call with reporters, and they expect the number of borrowers in default to continue to grow.
The report offers further confirmation of a crisis in the U.S. student loan portfolio, in which too many borrowers are not repaying their student loans. Nearly 10% of student loan balances are more than 90 days past due, according to the report.
Good. These assholes are only in power because we let them be. It’s time to hurt them the only way they care about — by not giving your money to them.
A society which charges its students to acquire knowledge values neither.
A healthy and broadly educated population, which feels safe and secure, is incompatible with, and toxic to, conservative and authoritarian ideologies.
They need you to be sick, stupid, and scared.
Remember when banks found out that mortgage backed securities were toxic because they gave loans to millions of people without applying basic home loan finance vetting, and they knew the CDO bubble was about to burst but they accelerated their purchasing of toxic assets anyways because they were still making money, and then the banks went bankrupt from holding billions in now worthless assets, and then got the government to bail out their corporations with billions of OUR tax payer dollars?
Part of lending is taking the calculated risk that you might not get paid back. The other side of “too big to fail” is that the rest of us are “too small to succeed.”
what do you expect when you retract the plans people signed and then don’t allow them to sign up for a new one…
Is that common? I was kicked off the SAVE plan, so I had to re-enroll in an older IBR plan
Debtors prison.
Can’t milk a rock, Donald.
I think the goal is to ruin the rock’s credit score, or put it into collections, or drive it into crime, etc.
Never forget the cruelty is the point. All of the baffling, hypocritical, batshit fucking stupid things Republicans do on the regular, all suddenly make sense when you consider that they don’t actually give a shit about enriching the country, their constituents, or often even themselves: their intent is solely to do harm to some outgroup.
I guess we finally found out what all those private prison lobbyists in Trump’s 2024 campaign wanted.
Can they garnish a spouses wage? My SO has the loans and she doesn’t work anymore. Tempting to just say fuck it.
Unless you live in one of the 9 community property states, or are a signatory on the loan, they can’t.
I do believe that the laws are different in each of those 9 states, though, so if you live in one you need to look up the laws there.
Is TX one? I bet TX is one. All they care about is business and money.
Yeah, they sure are.
If you’re gonna game the system that hard just get divorced and keep living together. Remove the uncertainty.
Rookie numbers. Gotta pump those numbers up!
I’m going to go back to school just so I can get a loan I can default on, are you doing your part?
