Federal Student Loan Balances Slightly Decrease, Delinquency Rate Increases

The Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit for Q2 2026 shows a $7 billion decrease in federal student loan balances, bringing the total to $1.65 trillion. However, the student loan delinquency rate for balances 90+ days past due slightly increased to 10.6% from 10.3% in the previous quarter. This report does not yet fully account for the Education Department's planned transition of Saving on a Valuable Education (SAVE) plan borrowers, who were instructed to choose new repayment plans starting July 1, 2026.