A new report from the U.S. Federal Reserve said that one million student loan borrowers were sent to a debt resolution group, while there were worrying trends seen across the most important areas of total household debt.
The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit showed that serious delinquency (90 days or more) was a problem for 16.19% of student loans, compared to only 3.26% for total household debt.
The Fed’s report added that 1 million students had their troubled accounts sent to a default resolution program. For borrowers who are behind but not yet in default, the window to get ahead of the problem is still open, and one move that some are making is using a personal loan at a lower fixed rate to consolidate the other high-interest debt crowding out their monthly budget, freeing up cash flow to stay current on student loans.
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7.7 Million Student Borrowers are Now in Default
The Fed’s assessment comes after data showed 7.7 million student borrowers are now in default as of the end of 2025. That huge number means that $180 billion of loans, and …
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