More federal student loan borrowers pausing payments
More than a quarter of the country’s over 40 million federal student loan borrowers are either in forbearance or deferment status.
About 10.3 million borrowers were enrolled in a payment pause known as a forbearance in the third quarter of 2025, an increase from about 2.9 million during the same time period in 2024. The Education Department’s fiscal year starts Oct. 1, so its third quarter runs from April 1-June 30.
Another 3.4 million borrowers had deferred their payments in the third quarter of this year, up from 3.2 million a year earlier. Deferments — available for reasons such as a job loss or cancer diagnosis — are another way for borrowers to postpone payments.
The sharp increase in student loan borrowers in forbearance partly stems from the fallout of former President Joe Biden’s Saving on a Valuable Education income-driven repayment plan, which was met with legal challenges and repealed this summer under President Donald Trump’s One Big Beautiful Bill Act. The millions of borrowers who enrolled in the SAVE plan were placed in forbearance in summer 2024 while the lawsuits played out.
Many borrowers with paused bills can’t afford the repayment plan options available to them, consumer advocates have said. The monthly payments on SAVE were much lower than those offered under other plans, and recent legislation further narrows borrowers’ repayment options.
Read more: CNBC
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