Student loans drive consumer debt delinquency to five-year high

Students hold up signs that say "Cancel Student Debt" and similar messages during a protest in then-House Speaker Kevin McCarthy's office. (Credit: Paul Morigi—Getty Images for We the 45 Million)

• Missed student loan payments have driven overall consumer debt delinquency to a post-pandemic high. As the Trump administration reverses lenient Biden-era policies, millions of borrowers have seen their credit scores plunge after delinquencies returned to credit reports in the first quarter of 2025. 

The Trump administration is cracking down on student loan repayments, driving the debt burden of American households higher as many borrowers struggle to keep up. After a five-year pause, the government restarted collections on defaulted student loan debt earlier this month, and millions of people have already seen their credit scores plunge after such delinquencies returned to credit reports in the first quarter of 2025.