Around 31% or 5.8 million of US student loan borrowers with outstanding debt are in 'late-stage delinquency,' meaning that they are 90 days past due on payments, as the US Department of Education doubles down on involuntary collections, according to the latest TransUnion report.
Over 80% of the 5.8 million newly delinquent borrowers are expected to reach a default status on their loans by September, with 1.8 million potentially reaching that status as early as July. Once you enter a default status after payments are 270 days past due date, the outstanding amount becomes subject to collection actions by the Education Department.
