Graphics chart the surge in defaults on federal student loans

Key Points:

• Student loan defaults in the U.S. have surged to a record 9.5 million borrowers, or 1 in 5 federal loan holders, following the end of pandemic-related payment pauses and relief programs.
• The default rate has sharply increased since June 2025, with $233.3 billion of the $1.7 trillion in federal student loans now in default, partly due to the expiration of income-driven repayment plans like SAVE.
• Southern states have the highest default rates, led by Mississippi at 28.3%, with many of these states having supported former President Trump in the 2024 election; Puerto Rico has the highest default rate overall at 30.9%.
• Borrowers from for-profit colleges face greater repayment challenges, with 33% behind on payments, more than double the rate of public school borrowers, prompting industry groups to form task forces to address the issue.
• Advocates highlight the growing financial strain on working-class borrowers amid rising living costs, while changes to federal repayment options may further increase default risks.