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5.3 Million Student Borrowers, Auto and Credit Card Delinquencies Rise Amid Trump Administration Collection Efforts

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Updated May 19, 2025, 10:33 AM

The U.S. is experiencing rising delinquencies across multiple types of consumer loans, including student loans, auto loans, credit cards, mortgages, and home equity lines of credit. Approximately 5.3 million student loan borrowers are currently behind on payments, with estimates suggesting this number could reach 10 million in the coming months as the Trump administration intensifies collection efforts. This has led to increased concerns about wage garnishments and Social Security offsets, particularly affecting retirees and public sector workers such as teachers.

Auto loan delinquencies have also surged, with the share of auto loan balances at least 90 days past due reaching 5.0% in the first quarter of 2025, close to the post-2008 financial crisis peak. Credit card serious delinquencies have hit their highest level in 14 years, and more than 6.5% of borrowers are at least 60 days late on car payments, marking a record high. While foreclosures remain low, the financial strain from rising delinquencies and resumed student loan collections could lead to an increase in foreclosures by year-end. Overall, consumer credit stress is worsening, with delinquency rates rising across various loan categories.

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