Recent trends show that more and more people are defaulting on their student loans. Most recently, for example, the total number of borrowers in default went up by 1.3 million. This is when comparing the amount to the final quarter of 2025, so the first quarter of 2026 saw a stark increase.
Overall, this means that there are roughly 9 million borrowers who are behind on their loans. They are failing to pay back roughly $220 billion, or 13% of the total that is owed in federal student loans.
Different types of student loans
It is worth noting that the statistics above are for federal student loans. But these are not the only type of loans being given out.
Many students also choose between federal and private loans. These private loans often have qualification requirements that are a bit more strict than federal loans, but the interest rates have more flexibility. Federal loans are regulated by Congress, but private loans can change from one institution to the next.
Even so, the increase in borrowers who are defaulting on their loans demonstrates that student debt has become a significant issue in the United States. Even private lenders are going to run into borrowers who fail to pay back what they owe, despite having obtained their degree.
This can become very complicated because there is not a tangible asset connected to the loan the way there would be with an auto loan or a home mortgage. As such, it is very important for lenders to understand all of the collection options that they have and the steps they can take when borrowers go into default.
