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#1: Horse    To: Horse (#0)

Default cliff: 3.6 million student borrowers hit record delinquency

The Kobeissi Letter
@KobeissiLetter
US student loan delinquencies are exploding: The number student loan borrowers that are severely delinquent is up to a record 3.62 million. The number of federal loan recipients 271+ days past due is now 8 TIMES higher than the pre-2020 average. This comes as the grace period ended in June 2025, when missed payments began appearing on credit reports. Meanwhile, the percentage of student loans transitioning into 90+ days of serious delinquency is up to 14.3%, an all-time high. This significantly exceeds the 2013 peak of 10.5% and 2008 levels of 7.5%. The student loan crisis is accelerating


The Federal Reserve Bank of New York confirms that the flow of student loans into serious delinquency reached 14.26 percent in late 2025, a figure that dwarfs the 10.5 percent peak seen during the height of the 2013 debt crisis. This is not a statistical anomaly; it is the direct result of the “on-ramp” period ending and the Trump administration resuming aggressive collections, including wage garnishments that were frozen for nearly five years. With 3.62 million borrowers now 271 days or more past due, the system is witnessing a “default cliff” that was entirely predictable once interest started accruing again in a high-inflation environment. People are ignoring the fact that while other debt categories like mortgages remain stable, student loans have become the primary driver of credit score destruction for an entire generation. We are looking at a structural failure where the debt is growing faster than the economy’s ability to service it, and the June 2025 reporting deadline was the match that finally lit the fuse.

Horse posted on 2026-02-05 11:20:25   Reply   Private Reply

#2: ghostrider    To: Horse (#1)

These members of Congress reported having student loan liabilities. If the member of Congress filed for an extension of the reporting requirement, a prior year’s disclosure form may have been used to include them in this list. This list does not include members of Congress who owe less than $10,000 in student loans.

Rep. Nanette Barragan (D-CA-44) Rep. Andy Biggs (R-AZ-5) Rep. Gus Bilirakis (R-FL-12) Rep. Brendan Boyle (D-PA-2) Rep. Salud Carbajal (D-CA-24) Rep. Tony Cardenas (D-CA-29) Rep. Andre Carson (D-IN-7) Rep. John Carter (R-TX-31) Rep. Emanuel Cleaver (D-MO-5) Rep. Ben Cline (R-VA-6) Rep. Gerry Connolly (D-VA-11) Rep. Sharice Davids (D-KS-3) Rep. Antonio Delgado (D-NY-19) Rep. Byron Donalds (R-FL-19) Rep. Veronica Escobar (D-TX-16) Rep. Ron Estes (R-KS-4) Rep. Michelle Fischbach (R-MN-7) Rep. Scott Fitzgerald (R-WI-5) Rep. Andrew Garbarino (R-NY-2) Rep. Jared Golden (D-ME-2) Rep. Jimmy Gomez (D-CA-34) Rep. Bob Good (R-VA-5) Rep. Josh Gottheimer (D-NJ-5)  Rep. Jahana Hayes (D-CT-5) Rep. Jahana Hayes (D-CT-5) Rep. Jody Hice (R-GA-10) Rep. Mondaire Jones (D-NY-17) Rep. Trent Kelly (R-MS-1) Rep. Raja Krishnamoorthi (D-IL-8) Rep. Conor Lamb (D-PA-17) Rep. Sheila Jackson Lee (D-TX-18) Rep. Kevin McCarthy (R-CA-23) Rep. Grace Meng (D-NY-6) Rep. Stephanie Murphy (D-FL-7) Sen. Christopher S. Murphy (D-CT) Rep. Joseph Neguse (D-CO-2) Rep. Alexandria Ocasio-Cortez (D-NY-14) Rep. Ilhan Omar (D-MN-5) Rep. Burgess Owens (R-UT-4) Sen. Alex Padilla (D-CA) Rep. Jimmy Panetta (D-CA-20) Rep. Stacey Plaskett (D-USVI) Rep. Chip Roy (R-TX-21) Rep. Raul Ruiz (D-CA-36) Rep. Tim Ryan (D-OH-13) Rep. David Schweikert (R-AZ-6) Sen. Kyrsten Sinema (D-AZ) Rep. Jason T. Smith (R-MO-8) Rep. Lloyd Smucker (R-PA-11) Rep. Darren Soto (D-FL-9) Rep. Greg Stanton (D-AZ-9) Rep. Greg Steube (R-FL-17) Rep. Eric Swalwell (D-CA-15) Rep. Rashida Tlaib (D-MI-13) Sen. Raphael Warnock (D-GA) Rep. Nikema Williams (D-GA-5)

ghostrider posted on 2026-02-05 14:38:08   Reply   Private Reply