Student Loan Delinquencies Rise Sharply in 32 States Including Missouri, Hawaii, Vermont

Student loan delinquency rates have surged across the United States following the end of the federal pause on student loan collections, with 32 states experiencing significant increases in the first quarter of 2025 compared to the last quarter of 2024. Missouri leads with the highest jump in delinquency at nearly 60%, despite having relatively low average student loan payments, indicating that economic pressures beyond loan amounts are influencing borrowers' struggles. Other states with notable increases include Hawaii and Vermont, while Alaska, Delaware, and Rhode Island saw declines in delinquency rates. The resumption of payments after a multi-year COVID-19 pause, coupled with changes in federal repayment plans under President Trump's administration, is contributing to financial strain among borrowers. Falling behind on payments can severely damage credit scores and lead to wage garnishment, tax refund interception, and other financial consequences. Experts advise borrowers to contact lenders promptly to explore repayment options like income-driven plans and deferment to mitigate the risks of delinquency.