US federal student loan defaults rise by 400,000 to 9.3 million in second quarter of 2026

In the United States, the number of federal student loan borrowers in default increased by 400,000 to 9.3 million in the second quarter of 2026, according to Federal Student Aid data. The defaulted loans total approximately $234 billion, about 14 percent of the federal student loan portfolio. The rise follows the expiration of pandemic-era payment pauses and the Biden administration's on-ramp period. The Trump administration has been overhauling the repayment system, eliminating the SAVE plan and introducing new repayment options. A coalition of 89 organizations has urged Congress to hold emergency hearings on widespread servicing errors and administrative failures affecting borrowers.