{"id":42664,"date":"2026-08-13T07:29:01","date_gmt":"2026-08-13T02:29:01","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=42664"},"modified":"2026-08-13T07:29:01","modified_gmt":"2026-08-13T02:29:01","slug":"new-ny-fed-report-shows-decline-in-student-loan-delinquencies","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=42664","title":{"rendered":"New NY Fed report shows decline in student loan delinquencies"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2026\/04\/Education-Department_041926_Lonas-Cochran_AP_Allison-Robbert_ece5ef.jpg?w=900\" \/><\/p>\n<div>\n<p>\n        <iframe id=\"instaread_iframe\" width=\"100%\" height=\"100%\" scrolling=\"no\" frameborder=\"0\" loading=\"lazy\" title=\"Audio Article\" style=\"display:block\" data-pin-nopin=\"true\"><\/iframe>\n    <\/p>\n<p><\/instaread-player><\/p>\n<p>Delinquency rates among student loan borrowers dipped last quarter relative to a year prior, according to a new analysis from the Federal Reserve Bank of New York.<\/p>\n<p>Roughly 7.8 percent of student loan borrowers missed at least three monthly payments in the second quarter, <a href=\"https:\/\/libertystreeteconomics.newyorkfed.org\/2026\/08\/how-distressed-are-consumers-reconciling-diverging-credit-card-delinquency-measures\/\" target=\"_blank\" rel=\"noreferrer noopener\">according to data<\/a> from the New York Fed\u2019s <a href=\"https:\/\/www.newyorkfed.org\/microeconomics\/hhdc\" target=\"_blank\" rel=\"noreferrer noopener\">quarterly report<\/a> on household debt and credit. The rate of serious delinquency for such borrowers in the second quarter of 2025 was nearly 12.9 percent.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\">\n<\/aside>\n<p>By contrast, the individual rates of serious delinquency for holders of mortgage debt, home equity lines of credit, auto loan debt and credit card debt either increased or stood pat.<\/p>\n<p>Overall, total household debt <a href=\"https:\/\/www.newyorkfed.org\/microeconomics\/hhdc\" target=\"_blank\" rel=\"noreferrer noopener\">decreased by $13 billion<\/a> from the first to second quarter of the year to $18.77 trillion, the central bank\u2019s New York branch reported. Nearly three-quarters of that debt was associated with housing costs.\u00a0<\/p>\n<p>Joelle Scally, an economic policy adviser at the New York Fed, noted delinquency rates have held steady \u201cacross most products\u201d over the past two years.<\/p>\n<p>\u201cStill, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we\u2019ll continue to monitor,\u201d Scally added in a release.<\/p>\n<p>The quarterly report partially chalked up \u201cdistortions\u201d in student loan delinquency rates to the \u201cre-reporting of defaulted student debt.\u201d<\/p>\n<p>The One Big Beautiful Bill Act, which President Trump signed into law in July 2025, made sweeping changes to the Education Department\u2019s policies regarding student loans.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\">\n<\/aside>\n<p>Borrowers who take out loans after July 1 of this year must repay the federal government via either the <a href=\"https:\/\/studentaid.gov\/announcements-events\/big-updates\/definitions#tiered-standard\" target=\"_blank\" rel=\"noreferrer noopener\">Tiered Standard Plan<\/a> \u2014 which adjusts according to the amount of an individual\u2019s principal balance, the interest rate on their loans and the length of their repayment period \u2014 or the new <a href=\"https:\/\/studentaid.gov\/announcements-events\/big-updates\/definitions#rap\" target=\"_blank\" rel=\"noreferrer noopener\">Repayment Assistance Plan<\/a>.<\/p>\n<p>For borrowers who take out loans under the latter plan, their required monthly payment is based on their income and how many dependents they have, if any.\u00a0<\/p>\n<p>Undergraduate loans received between July 1 of this year and July 1, 2027, are subject to 6.52 percent interest, up from 6.39 percent from the prior year and more than double the rate for the 2020-21 loan period, according to the\u00a0<a href=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/interest-rates\"><u>Education Department<\/u><\/a><strong>.<\/strong><\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\">\n<\/aside>\n<p>A federal appeals court <a href=\"https:\/\/thehill.com\/homenews\/education\/6011972-court-approves-student-loan-forgiveness\/\" target=\"_blank\" rel=\"noreferrer noopener\">last week also required<\/a> the Education Department to erase roughly $11 billion in federal student loan debt owed by 170,000-plus borrowers.<\/p>\n<p>Those borrowers had accused their colleges of misleading them or engaging in fraud, and the Trump administration last November <a href=\"https:\/\/thehill.com\/homenews\/education\/5595814-trump-administration-student-loan-settlement\/\" target=\"_blank\" rel=\"noreferrer noopener\">asked for<\/a> additional time to determine whether they were entitled to loan forgiveness under a <a href=\"https:\/\/docs.google.com\/document\/d\/1QC8HRb4-rX8d1ELYOg0dy9bvBS8kYhISVd9KSrDNv8U\/edit?tab=t.0\" target=\"_blank\" rel=\"noreferrer noopener\">2022 settlement<\/a> the Biden administration reached with the plaintiffs.<\/p>\n<p><em>This story was updated at 4:57 p.m.<\/em><\/p>\n<\/div>\n<p>Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>Delinquency rates among student loan borrowers dipped last quarter relative to a year prior, according to a new analysis from the Federal Reserve Bank of New York. Roughly 7.8 percent of student loan borrowers missed at least three monthly payments in the second quarter, according to data from the New York Fed\u2019s quarterly report on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":42665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2026\/04\/Education-Department_041926_Lonas-Cochran_AP_Allison-Robbert_ece5ef.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-42664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-political-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/42664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42664"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/42664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/42665"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}