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Jun 3, 2025  |  
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Elaine Mallon


NextImg:Nearly 10 million student loan borrowers risk credit hit - Washington Examiner

Approximately 9.7 million student loan borrowers fell behind on their payments after the COVID-19 pandemic-era payment pause ended, according to a new estimate from the Federal Reserve Bank of New York

“After payments resumed, the volume of past due federal loans quickly returned to pre-pandemic levels and reached a new high of 15.6 percent by the end of the on-ramp period, with more than $250 billion in delinquent debt held by 9.7 million borrowers,” the report stated. 

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When the COVID-19-era pause on federal student loan payments ended in September 2023, the Biden administration introduced a 12-month “on-ramp” to help borrowers transition back to repayment. During this period, borrowers were protected from most penalties for missing payments, but this relief ended on September 30, 2024.

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“It is reasonable to expect student loan delinquency to surpass pre-pandemic levels when new delinquencies hit credit reports,” the Fed’s report also said.

A student loan delinquency can cause a drop in a borrower’s credit score of over 150 points, resulting in “reduced credit limits, higher interest rates for new loans, and overall lower credit access.”