Nearly Half of Student Loan Borrowers Are Not Yet Paying Their Monthly Bill

After a three-year pause on federal student loan payments due to the pandemic, many borrowers have resumed repayment, while others have not. This situation, coupled with unpredictable court rulings, has complicated the government’s efforts to collect the $1.6 trillion owed. By the end of March, approximately 20 million borrowers were making payments as scheduled, while around 19 million were not, resulting in delinquency, default, or continued payment pauses. The high delinquency rate, the largest since 2016, has raised concerns about the effectiveness of the system. Various reasons contribute to non-payment, including financial constraints, bureaucratic challenges, and the temporary on-ramp period until September.