Delinquency rates on student loans may have stabilized at midyear mark
Despite many federal student loan borrowers experiencing ongoing issues repaying their student loans on time, the rate of delinquency may be plateauing.
A news article from The Washington Post reporting on findings from the Federal Reserve Bank of New York detailed that just a 0.3 percentage point increase in the rate of delinquencies in the second quarter from that of the first quarter, falling just below levels seen prior to the COVID-19 pandemic.
Further, nearly 8% of borrowers missed three months or more of repayments in the second quarter of 2026 compared with nearly 13% of borrowers during the same time frame of 2025, according to a news article from The Hill. Total household debt also dropped by $13 billion in the second quarter.
However, experts cited in the articles warned that the termination of the Saving on a Valuable Education plan could force borrowers onto less affordable repayment plans and that U.S. Department of Education data indicated that up to 20% of federal student loan borrowers may currently be in default. In addition, the delinquency rates for credit card payments and auto loans have seen increases.
Read more: The Washington Post
The article presented here is intended to inform you about the broader media perspective on dentistry, regardless of its alignment with the ADA's stance. It is important to note that publication of an article does not imply the ADA's endorsement, agreement, or promotion of its content.