The band Twenty One Pilots may have said it best in their 2015 hit Stressed Out: “Out of student loans and tree house homes, we all would take the latter.” It’s a lyric that hits a little harder these days—especially when you look at this week’s chart.
After a multi-year pause, student loan repayments resumed last year. And the impact is showing up fast. In the first quarter of 2025, student loan delinquencies jumped from 0.5% to 7.7%. That’s the highest reading since before the pandemic pause—and now the second-highest delinquency rate among major loan types, trailing only credit cards.
Roughly 43 million Americans carry student debt. When payments are missed, credit scores take a hit, making it harder to borrow or spend. That matters, because consumer activity is a key pillar of the economy.
At the same time, financial cushions are shrinking. The personal savings rate is just 3.95%, well below historical norms, and real disposable income rose only 1.5% year-over-year in March—the weakest pace in over two years.
The bottom line? This spike in student loan delinquencies may not be enough to tip the economy on its own, but it’s another sign that financial pressure is building.
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