US student loan defaults rise as repayment protections end

The number of borrowers in default on U.S. federal student loans has surged since pandemic relief measures were lifted. More than 9 million borrowers are now in default, about one‑fifth of all loan holders. A major concern is the expiration of the SAVE (Saving on a Valuable Education) forbearance, which had shielded roughly 7 million borrowers. With SAVE ending, those borrowers are slated to resume payments, and analysts expect a wave of defaults as early as July 2027, with a pronounced risk of a spike next summer.

The rise follows the end of the Biden administration’s “on‑ramp” that delayed defaults after payments resumed in 2023. After the on‑ramp ended in September 2024, defaults increased, reaching 1.3 million between January and March 2026. The Education Department warns that delinquency remains high, with 3.5 million loans more than 30 days past due and 1.4 million at imminent risk of default. Stories of higher‑income borrowers, such as a former parent with a six‑figure salary whose monthly payment exceeded $1,000, illustrate that default is not limited to low‑income households.