Student Loan Delinquency Rates Fall, but Other Debt Remains a Concern

The Federal Reserve Bank of New York reported that student loan delinquency rates have dipped in the second quarter, relative to last year. According to their quarterly report on household debt and credit, about 7.8% of student loan borrowers missed at least three monthly payments in Q2 2025.

This rate is lower than the nearly 12.9% serious delinquency rate for such borrowers in the same quarter a year ago. In contrast, delinquency rates for other types of debt like mortgages, home equity lines of credit, auto loans, and credit cards have either increased or stayed the same.

The report noted that total household debt decreased by $13 billion from Q1 to Q2 2025, reaching a total of $18.77 trillion. Housing costs account for nearly three-quarters of this debt.

According to Joelle Scally, an economic policy adviser at the New York Fed, delinquency rates have held steady across most products over the past two years.