WASHINGTON–New data show that since the restart of federal student loan payments, almost as many people are not making payments as those who are.
As of March 31, the data from the Department of Education show 20 million borrowers were making their payments as scheduled, but nearly 19 million were not, leaving their accounts delinquent, in default or still on pause.
Overall, there is approximately $1.6-trillion in outstanding federal student loan debt.
“The nonpayment rate really is emblematic of a system that’s not doing its job,” said Persis Yu, the managing counsel for the Student Borrower Protection Center, an advocacy group, told the New York Times.
What the Data Show
The data show seven million borrowers with federally managed loans were at least 30 days overdue on their payments at the end of 2023, the highest delinquency rate since 2016, which as far back as the department’s public records go.
“Because of a policy adopted by the Biden administration, those borrowers will face no penalties for their nonpayment until October at the earliest,” the report stated. “Millions more had their accounts frozen through deferment or forbearance…and nearly six million borrowers remain mired in defaults that began before the pandemic.”