Business
As Federal Collections Activity Resumes, More Than One in Five Federal Student Loan Borrowers With a Payment Due are Seriously Delinquent
New TransUnion analysis explores the percentage of student loan borrowers at risk of default and the credit score impactsCHICAGO, May 05, 2025 (GLOBE NEWSWIRE) -- As the U.S. Department of Education begins resuming collections activities among defaulted borrowers, new research reveals that the number of consumers at risk for default has soared past pre-pandemic levels. These findings come from a new analysis conducted by TransUnion (NYSE: TRU) and featured at the company’s 2025 Financial Service
About this update from Transunion
[{"type":"image","alt":"TransUnion","displaySize":"","headline":null,"caption":"TransUnion","className":"","disableSlideshowImg":false,"size":{"original":{"width":300,"height":78,"url":"https://media.zenfs.com/en/globenewswire.com/f276591967affdf5c4321366f8af827a"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/Z15ZuI9B7Rv571wGytinvQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTEwOTtjZj13ZWJw/https://media.zenfs.com/en/globenewswire.com/f276591967affdf5c4321366f8af827a","width":300,"height":78}},"lazy":false},{"type":"text","content":"New TransUnion analysis explores the percentage of student loan borrowers at risk of default and the credit score impacts","length":121,"tagName":"p"},{"type":"text","content":"CHICAGO, May 05, 2025 (GLOBE NEWSWIRE) -- As the U.S. Department of Education begins resuming collections activities among defaulted borrowers, new research reveals that the number of consumers at risk for default has soared past pre-pandemic levels. These findings come from a new analysis conducted by TransUnion (NYSE: TRU) and featured at the company’s 2025 Financial Services Summit, attended by 300+ leading industry executives.","length":434,"tagName":"p"},{"type":"text","content":"The Department of Education (DOE) initially suspended federal student loan payments in March 2020. The agency called for payments to resume in September 2023, with servicers directed not to report them to credit bureaus until October 2024, with the requirement that borrowers only be reported to credit bureaus as delinquent when they reach 90 days or more past due on federal student loan accounts. Last month, the DOE announced it would resume collection activities effective today.","length":484,"tagName":"p"},{"type":"text","content":"The analysis found that 20.5% of federal student loan borrowers with a payment due are 90 days or more past due (90+ DPD) as reported by their servicer through February 2025. This compares to 11.5% in February 2020, near the beginning of the pandemic and the subsequent student loan pause. The current rate of delinquency represents the highest figure ever recorded.","length":366,"tagName":"p"},{"type":"text","content":"More Consumers are 90+ Days Past Due (90+ DPD) Than Just Prior to the Pandemic","length":78,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"style":"max-width:20%;width:20%;min-width:20%;border-top:solid black 1pt...