TransUnion's new analysis, released on May 5, 2025, revealed that 20.5% of federal student loan borrowers with a payment due were 90 days or more past due (90+ DPD) as of February 2025. This figure, up from 11.5% in February 2020, represents the highest delinquency rate ever recorded, coinciding with the resumption of federal collections activities.
The report highlighted that subprime borrowers were most affected, with 51% at 90+ DPD, an increase from 39% in February 2020. Near prime borrowers also saw a significant rise to 23% at 90+ DPD, up from 9% in the same period.
Michele Raneri, vice president and head of research at TransUnion, noted the complexity of student loan payment reporting and the dramatic impact default can have on credit scores, with an average decline of 63 points. Lenders are increasingly incorporating student loan-specific insights into portfolio reviews, driving demand for TransUnion's TruVision Premium Student Loan Attributes.
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