By Alicia Wallace, CNN
(CNN) — Student loan delinquencies are poised to hit record highs, and more than 9 million borrowers could see their credit scores tank in the first quarter of this year, according to new data released Wednesday.
The Federal Reserve Bank of New York released its latest snapshot on student loan borrowing, a biennial report that tracks debt loads, delinquencies and related impacts to credit scores.
The 2025 Student Loan Update showed that an estimated 15.6% of federal loans — a new record — were past due at the end of last year, with more than $250 billion in delinquent debt held by 9.7 million borrowers.
New student loan delinquencies have been shown to take massive bites out of credit scores, with deductions averaging 87 points for subprime borrowers and steep 171-point knocks for those with superprime, or excellent, credit standing.
The latest data shows that student loan debt is becoming a greater burden at a time when the Trump administration’s actions — including shuttering the Department of Education and temporarily halting income-driven repayment applications — could further upend and complicate borrowers’ abilities to manage their debt.
This story is developing and will be updated.
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