Student loan delinquencies are stabilizing, though past-due education-related debt still remains high, according to the Federal Reserve Bank of New York.
The agency put out a Household Debt and Credit Report on Tuesday that found that the rate of serious delinquencies among student loan accounts has been slowing down in the second quarter of 2026. That follows an increase in past-due bills following a pandemic-era pause on payments put in place by the Department of Education.
In the second quarter of the year, approximately 10.6 percent of student loan balances were at least 90 days past due, according to The Washington Post.
That amount was consistent with the rate of serious past-due accounts prior to the pandemic. Researches told reporters on Tuesday that the new data shows student load delinquencies are stabilizing, even if the rate of past-due accounts is still fairly high.
They also mentioned that the recent elimination of the Saving on a Valuable Education plan — otherwise known as the SAVE plan — put in place during former President Joe Biden‘s administration, could cause the rate of delinquencies to increase.
The plan allowed borrowers to make low monthly payments and gave them an expedited route to student loan forgiveness.
A group of federal student loan borrowers sued the Education Department in March in an attempt to stop the shuttering of the SAVE plan. The lawsuit argues that the department’s process of forcing borrowers out of the plan is unlawful.
When the Education Department announced that the plan was ending, it told enrolled borrowers that they had 90 days to enroll in a “lawful” repayment program or they would be switched to a standard repayment plan, which would likely require them to make monthly payments they could not afford.
While that issue is being litigated in court, borrowers are still expected to keep up with their payments to avoid falling into default.
Currently, one in five federal student loan borrowers — accounting for approximately 9.5 million people — have loans in default as of March. To be considered in default, accounts must be more than nine months behind in their payments, according to the Education Department.