New data from the Federal Reserve Bank of New York indicated that about one million borrowers defaulted on their federal student loans last year, with 9.6 percent of balances at least 90 days past due. As of September, 3.3 million borrowers were between 31 and 270 days late on payment and 3.6 million were technically in default (more than 270 days late on their payments). Another 5.2 million were actually in default as of September 30, though most had defaulted prior to the pandemic. In addition, 9.8 million borrowers are in forbearance, pausing their payments while the loans accumulate interest.
Cory Turner, NPR
Comments