Americans' student loan balance tops $1.6 trillion; nearly half of borrowers haven't resumed payments

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Rep. Virginia Foxx, R-N.C., says students will borrow more in the future, thinking taxpayers will pay it off on ‘The Evening Edit.’

Student loan borrowers in the U.S. are taking their time resuming repayments after the last pandemic-related pause expired late last year.

Repayments were paused for borrowers of federal student loans from mid-March 2020, when the COVID pandemic began, and remained in effect until Sept. 1, 2023, 3½ years after the repayment pause began.

Data from the Department of Education shows that, as of the end of March 2024, almost 20 million borrowers have resumed making payments on their student loans, while roughly 19 million haven't done so, leaving their accounts in a state of delinquency, default or otherwise paused through deferment or forbearance, The New York Times reported.

Borrowers have until September to take advantage of a so-called on-ramp that allows them to hold off on making payments without having the non-payments reported to credit bureaus. Although, their accounts continue to accrue additional interest while the on-ramp is in effect.

BIDEN'S STUDENT DEBT HANDOUT PLAN COULD COST AS MUCH AS $1.4 TRILLION

Some student loan borrowers have lobbied the Biden administration to cancel as much student loan debt as possible despite courts rejecting some of the president's proposals. (Kent Nishimura/Los Angeles Times via Getty Images / Getty Images)

The data showed that 42.8 million recipients of federal student loans owed a total of $1.62 trillion in debt as of the end of March.

The number of recipients declined to its lowest level since the third quarter of 2022 amid President Biden's student loan handout plans that have sought to cancel or reduce outstanding balances for borrowers.

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