WASHINGTON - New federal data shows that 8.8 million people are now in default on their federal student loans.

Statistics from January reveal that a new borrower entered default every nine seconds on average over the past year. The total amount of student loan debt in default has now reached $208 billion. This includes $92 billion in new defaults that have occurred since January 2025. According to the Department of Education, 3.6 million Americans became delinquent on their payments in the final three months of 2025 alone.

Current figures highlight the scale of the financial struggle for borrowers. Total defaults now involve 8.8 million borrowers who are at least 270 days behind on payments. More than 8 million borrowers had their credit scores impacted in 2025 after falling more than 90 days behind. Total student loan debt grew to $1.66 trillion by the end of 2025, and nearly 10% of that balance is considered seriously delinquent.

Geographic data shows an impact in the Midwest and Northeast. In Ohio and Pennsylvania, student loan debt remains a major part of the total household debt per person.

In Pennsylvania, the percentage of residents with debt that is at least 90 days late is higher than the national average. Ohio also faces elevated delinquency rates, with a notable portion of borrowers transitioning into serious delinquency during the last quarter of 2025. National data also shows that approximately two-thirds of borrowers currently in default live in states won by the Trump-Vance ticket in the 2024 election.

In response to the statistics, the U.S. Department of Education announced a delay in involuntary collections on Jan. 16. The pause stops the government from taking money from paychecks or tax refunds for defaulted loans. Officials stated the delay gives borrowers time to look at new repayment options.

A new plan starting in July will help stop interest from growing for those who make on-time payments. The government also plans to offer a second chance for people to fix their credit and move their loans out of default status.

While collections are paused, the Department of Education continues to report defaults to credit bureaus. Borrowers are encouraged to contact their loan servicers to discuss ways to get their accounts back on track.