2s. STUDENT LOAN DEBT CRISIS IN THE US. WHO LAUGHS, WHO CRIES, AND WHO BEARS THE BURDEN?
Student Loan Bills Return After Pandemic Pause Ends, Leaving Millions Struggling With Debt
After the Trump administration officially ended the pandemic-era pause on federal student loan payments, millions of Americans are once again facing enormous financial strain.
For many, student loans have become a lifelong burden.
For countless Americans, student debt remains an overwhelming financial weight.
“Overdue” in Red Letters
When 26-year-old David, who lives in Seattle, logged into his federal loan dashboard, he was confronted with staggering numbers: more than $27,000 in loans under his name and an additional $63,000 in co-signed loans originally taken with his father—loans he now shoulders alone.
But what shook him most was the bright red word next to the balance: “Overdue.”
David graduated in 2021 with a degree in political science and now works for a nonprofit. With rent and utilities in Seattle costing roughly $1,500 per month, his $500 monthly loan payment has become nearly impossible to manage. He missed his June payment entirely.
A National Crisis: Nearly $1.7 Trillion in Debt
According to analyses by TransUnion, as of April 2025, about 5.8 million borrowers—roughly 31% of those with federal student loans—are at least 90 days past due. Delinquencies and defaults have surged sharply since the end of pandemic relief programs.
The U.S. now holds nearly $1.7 trillion in federal student loan debt across 42.7 million borrowers. In May, the Trump administration resumed collections on loans that had been in default but frozen for five years.
An estimated 1.8 million borrowers are currently at risk of defaulting—defined as being 270 days overdue. Default can result in wage garnishment, aggressive collection measures from the Department of Education, and long-term harm to credit scores.
Family Tension and Financial Fallout
David says the loans under his own name are temporarily deferred, but the co-signed loans with his father are not—and those are the ones that have entered delinquency.
The late payments have already taken a toll at home.
“My dad’s credit score dropped by around 50 points. It’s been really hard to deal with,” David said. “He was furious.”
