US Student-Loan Delinquency Rate Rises to 10.3%, Raising Credit-Card and Auto-Loan Spillover Fears

Payments and delinquency reporting on roughly $1.6 trillion in US student loans were suspended during the pandemic. Payments resumed in October 2023, while a one-year repayment grace period ended in late September 2024. With delinquencies again appearing on credit reports, borrowers could face lower credit scores and higher costs on other loans.

A Federal Reserve Bank of New York report for the first quarter of 2025 showed that the share of student loans at least 90 days delinquent had risen to 10.3%, reflecting pressure after relief measures expired. The report also found that student-loan defaulters were heavily concentrated among borrowers delinquent on credit cards and auto loans, fueling concerns about cascading deterioration in consumer credit.