Student loan defaults surge to record highs, impacting millions of federal borrowers.

Federal data indicates a significant increase in student loan delinquencies, with 3.62 million borrowers now severely delinquent. The percentage of student loans transitioning into 90+ days of serious delinquency has reached an all-time high of 14.3%, significantly exceeding previous peaks. This surge follows the end of the grace period in June 2025, when missed payments began affecting credit reports.