KEY TAKEAWAYS

  • The rate at which student loans are becoming seriously delinquent is almost 13%, higher than any other debt type.
  • While student loans typically have higher delinquency rates than other debt types, the number of missed payments has been higher this year than usual.
  • Missed payments that were not reported to credit bureaus for almost five years because of the COVID-19 payment pause are now showing up on credit reports.

Missed payments on student loans are rising faster than any other debt type and are even higher than in previous years.

According to data released Tuesday from the New York Federal Reserve, student loan balances became at least 90 days late at a rate of 12.88%. That is almost twice the rate of credit card debt.1

Student Loan Debt is Flowing into Serious Delinquency More Than Any Other Debt Type
Debt Type Q2 2024 Q2 2025
Student Loan Debt 0.80% 12.88%
Credit Card Debt 7.18% 6.93%
Other 5.42% 5.42%
Auto Loan Debt 2.88% 2.93%
Mortgage Debt 0.95% 1.29%
Home Equity Line of Debt 0.51% 1.15%
From the New York Fed: “Rates represent annualized shares of balances transitioning into delinquency. Flow into serious delinquency is computed as the balances that have newly become at least 90 days late in the reference quarter divided by the balances that were current of less than 90 days past due in the previous quarter.”

The Department of Education paused federal student loan payments during the COVID-19 pandemic, and an on-ramp period meant missed payments did not harm credit scores until February. When reporting to credit bureaus resumed after almost five years at the beginning of this year, delinquency rates skyrocketed, and credit scores began to fall.2

Student loan debt typically has higher delinquency rates than any other type of debt, as consumers usually prioritize other debt, like mortgage or auto loans. However, borrowers are missing student loan payments even more now than in the years before the pandemic payment pause.

In the first quarter of 2020, the rate of student loans flowing into serious delinquency was less than 9%.3

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