The news: 10.7% of consumers with student loans were 90+ days delinquent in the last six months in April 2025, per a FICO report.
6.1 million customers—or 3.1% of FICO’s scorable population—had a student loan delinquency added to their credit file between the months of February and April 2025.
This was a massive leap up in late-term delinquencies year over year; April 2024’s 90+ days delinquent rates hovered at 0.9%.
How we got here: CARES Act’s pause on student loans payments expired in October 2023, and the Department of Education's one-year on-ramp period further delayed reporting on delinquencies.
These failures to pay started popping up on credit reports in February 2025, sending late-stage delinquency rates soaring.
Generational impact: Gen Zers are particularly hard hit by the resumption of student loan payments. About one-third (34%) of Gen Zers have open student loans, twice the amount of the general population.
Missed payments are pummeling their credit scores: 14.1% of Gen Zers’ scores fell 50 points or more in April 2025. Overall, the generation’s average score slipped by three points this year, the largest drop of any demographic since 2020.
However, not all Gen Zers are on the downward swing: Over the last year, 9.8% of Gen Zers’ scores increased by 50+ points. This suggests that some Gen Zers are improving their financial health despite the pressures felt by many in their age bracket.
Payment priorities: Student loan delinquencies may be strategic in the eyes of those failing to make payments.
FICO compared delinquency rates among consumers with multiple credit products and found that consumers were more likely to be delinquent on student loans than any other kind of loan. This suggests that consumers are prioritizing staying current on other loans, like auto loans, mortgages, and credit cards.
Our take: We expend more young consumers will struggle to make student loan payments, especially as the Department of Education restricts access to income-driven repayment plans.
Issuers should take note that 54% of Gen Zers are already using credit products to navigate stress from student loan repayment, per FICO. If economic conditions worsen, credit card delinquencies could also begin to rise in tandem with student loan delinquencies.