New FSA Data Shows 1.3 Million Uptick in Defaulted Borrowers
Maria Carrasco
June 26, 2026
Federal Student Aid (FSA) on Tuesday released newly updated data from 70 quarterly application, disbursement, and loan portfolio reports, showing a 1.3 million uptick in the number of borrowers in default since the last quarter in 2025.
As part of a quarterly update, FSA’s updated reports include new data from January 1 through March 31, 2026. Notably, in the latest quarter, the number of borrowers in default increased by approximately 1.3 million compared with the previous quarter (October 1 through December 31, 2025). In total, as of March 31, there are roughly 9 million borrowers in default, with $220 billion in outstanding federal student loan debt, which represents more than 13% of the total $1.64 trillion federally managed student loan portfolio.
This updated data comes as the Trump administration ramps up initiatives to bring borrowers back into repayment – including a 1% interest rate reduction if borrowers enroll in auto pay and a campaign to get borrowers enrolled in the Saving on a Valuable Education (SAVE) plan to choose another repayment plan.
