More than nine million Americans have missed student loan payments this year, a spike that is rippling through household budgets, credit reports and even holiday plans.
The numbers are stark and sometimes surprising. A recent survey found roughly 42% of federal student loan borrowers say their monthly payments make it harder to cover basics such as food and housing; 37% report strain meeting health-care costs; and more than half say the debt has forced them to save less for retirement. At the same time, the share of loans slipping into serious delinquency — defined as 90 or more days past due — has climbed fastest among older borrowers, with people 50 and older seeing delinquency rates near 20% in recent quarters.
These trends reflect a squeeze from several directions: the end of pandemic-era protections, economic softness in parts of the labor market, and policy shifts that are removing repayment options many borrowers had come to rely on.
What’s driving the rise
When federal payments resumed after the pandemic pause, borrowers were given a one-year “on-ramp” during which missed payments wouldn’t hit credit reports. Those protections have now faded, and late payments are showing up on credit files again. At the same time, the Biden administration’s attempt to widen relief through income-driven plans and broader forgiveness was blocked in the courts, and the current administration has moved to halt new enrollments in the Biden-era SAVE repayment program, saying it will transition people into alternative plans.
Experts warn that shifting borrowers out of the SAVE framework — which for many lowered monthly bills dramatically — will push payments higher for hundreds of thousands who had enrolled or were applying. Michele Zampini of the Institute for College Access & Success says many are being forced into painful tradeoffs: paying a loan or buying groceries, seeking medical care, or avoiding eviction.
Carolina Rodriguez, who runs a consumer assistance program in New York, describes a different picture: "Highly educated individuals are budgeting in ways they never imagined just to survive," she told reporters. "The food line item is often reduced, but there's only so much they can cut."
Who’s feeling it
The burden isn’t limited to recent grads. Middle-aged and older borrowers — people who took on debt for undergraduate degrees recently or who co-signed for children — have seen some of the fastest increases in serious delinquency. Although 30-to-39-year-olds still hold the largest share of total balances, the jump in late payments among older cohorts raises concerns about retirement security and long-term financial health.
And it’s not only numbers on a spreadsheet. Interviews with borrowers reveal real, immediate consequences. Some are skipping vacations, cutting holiday gift lists to a few relatives, or relying on friends and family to get by. Others, despite decent incomes, carry large private or graduate-school balances that keep them living paycheck to paycheck.
The collection landscape — and the risks
As accounts fall into default, the enforcement tools available to the government and collectors become more severe: wage garnishment, administrative offsets of tax refunds, and other collection actions can follow. At the same time, experts warn that a returning flood of collection activity creates an opening for scammers posing as debt collectors.
If you’re contacted by someone about your loans, verify the call with your servicer and insist on written validation of any debt. Legitimate collectors must provide details in writing, including the amount owed and the creditor’s name. And remember: you should not have to pay for help to manage federal student aid.
What comes next
Analysts expect defaults to keep rising as repayment protections narrow and repayment plans change. Some government estimates suggest the number of borrowers in default could climb toward double-digit millions if current trends persist. For policymakers, the challenge is twofold: restore clear, accessible pathways for borrowers to manage payments, and protect vulnerable households from the cascading harms of missed debt — worsening credit, reduced savings, and strained access to basic needs.
For borrowers, the immediate steps are practical: contact your loan servicer to explore options, verify any collection outreach, and seek free counseling from nonprofit credit-counseling groups or legal aid organizations if you’re facing garnishment or other enforcement.
This is more than an arcane policy fight. It’s a widening economic pressure that is changing life decisions — from whether someone feels able to have children or buy a home, to whether they can show up for family holidays with gifts in hand. The numbers will keep moving, but for millions the consequences are already here.