Your Money Minute Student Loan Delinquincies Soar 8/22/25
Aug 22, 2025
A dramatic surge in student loan delinquencies is causing concern, with a staggering 12% increase in 30-day delinquencies after forbearance ends. The discussion highlights how policy changes from the previous administration have made it tougher for borrowers. Tune in to explore the implications of these trends and what they mean for the future of student loans.
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Delinquencies Jump After Forbearance Ends
- Student loan delinquencies spiked after reporting rules changed and forbearance ended.
- The 30-day delinquency rate rose from 1% in Q4 to 13% by Q2, per the New York Fed data.
Policy Changes Raise Borrower Pressure
- Policy shifts under the Trump administration increased borrower burdens and collections activity.
- Actions included ending the SAVE plan, restarting collections, and tightening Public Service Loan Forgiveness rules.
Delinquencies Could Hurt Broader Credit
- Rising student debt delinquencies can spill into other credit problems for borrowers.
- Analysts watch for knock-on effects like credit card stress and broader economic weakness.