Two years after federal student loan payments resumed in October 2023, delinquency rates have risen back to prepandemic levels. According to the Urban Institute’s
Debt in America interactive map, about 6 million Americans—16 percent of borrowers—are now 60 days or more behind on their loan repayments.
Southern states show the highest delinquency rates, driven by lower median incomes and a higher share of borrowers who did not complete a degree, which make repayment more challenging.
This trend not only signals a return to prepandemic levels but also raises concerns about affordability and household budgeting. With the return of student loan payments, many face a choice between essentials like groceries or paying down their debt. While many prioritize necessities, the long-term consequences of delinquency—such as damaged credit and eventual default—can wreck their financial futures.
