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The nationally representative survey of federal student loan borrowers, conducted by Data for Progress, found that 20% of borrowers currently in repayment are either delinquent or in default. Nearly half of all borrowers—45%—report making tradeoffs between loan payments and covering basic needs like rent and food.
"With how the economy is, I can barely afford to live. I have to choose between rent, loans, or putting food on the table," one survey respondent wrote.
The findings arrive as the U.S. Department of Education reported that as of October 2025, borrowers with more than $140 billion in outstanding federal student loans were in default. An additional 6.4 million borrowers were at various stages of delinquency, ranging from 30 to more than 270 days past due.
In an August data release, the Education Department itself warned of a looming "default cliff," noting that "many delinquent borrowers are in danger of defaulting in the coming months."
The survey revealed significant gaps in borrower awareness of available relief options. Fifteen percent of borrowers reported hearing "nothing at all" about income-based repayment plans, while 23% were unaware of the Public Service Loan Forgiveness program. Fewer than half knew about programs that discharge loans for borrowers with severe disabilities.
Student loan default carries severe consequences, including credit score damage, wage garnishment, and seizure of Social Security payments and tax refunds. The federal government can pursue these actions without court intervention.
