CHICAGO, IL — New data released by TransUnion shows that more than 30% of federal student loan borrowers with payments due were at least 90 days delinquent as of April 2025, marking the highest delinquency rate on record and a growing risk of mass defaults in the months ahead.
According to TransUnion’s analysis, 31.0% of borrowers were 90 days or more past due in April—up from 20.5% in February 2025, and nearly triple the 11.7% rate seen in February 2020, before the COVID-19 pandemic pause on payments began.
These findings come less than two months after the U.S. Department of Education resumed collection activities on defaulted federal student loans. TransUnion plans to feature the data in a June 26 webinar titled Market Update: Student Loan Repayment Impacts.
“This represents a sharp increase in borrowers falling behind on payments,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “More consumers are vulnerable to entering default and the start of collections activities.”
While the rate of increase slowed slightly between March (30.6%) and April (31.0%), experts caution that millions of borrowers are still on track to default soon. Once a borrower has been delinquent for 270 days—roughly six months—they officially enter default status and become subject to federal collections.
Millions Close to Defaulting
Of the estimated 5.8 million borrowers reported as 90+ days past due, approximately 1.8 million could reach default status in July 2025, with another 1 million in August and 2 million more in September if they do not resume payments.
“Borrowers at risk should contact their loan servicers immediately to discuss repayment options or rehabilitation programs,” Raneri advised.
Options may include income-driven repayment plans or loan rehabilitation to help avoid the negative impacts of default, including debt collection and damage to credit scores.
Major Credit Score Impacts
The report also highlights that borrowers who become 90 days delinquent have seen their credit scores drop by an average of 60 points, according to VantageScore® 4.0 data. Many borrowers previously in prime or above credit tiers before delinquency have now shifted into subprime categories, dramatically altering their creditworthiness.
“More than one in five of these borrowers were in prime or better credit tiers before falling behind,” said Joshua Turnbull, senior vice president and head of consumer lending at TransUnion. “After delinquency, that number falls to fewer than one in 50.”
The findings suggest that student loan repayment challenges are affecting borrowers across all credit tiers—not just those with a history of financial difficulty.
