The rising student loan delinquencies are expected to strain the economy further, reducing growth by 0.13% this year
The first three months of 2025 saw credit scores for 2.2 million delinquent student loan borrowers drop by 100 points, with 1 million losing 150 points or more, the Washington Post reported, citing data from the Federal Reserve Bank of New York.
This sharp decline in credit scores mirrors the impact of bankruptcy filings.
As a result, many borrowers now struggle to qualify for loans, facing higher costs at a time when borrowing rates are near 20-year highs.
The rising student loan delinquencies are expected to further strain the economy, reducing growth by 0.13% this year, according to Moody’s Analytics.