Q3-2025 Update: Federal Student Debt Shifts Older as Balances Rebound

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Quick Insights

• Balances are trending older: Borrowers under 24 now carry the lowest debt levels in the dataset’s history, while balances among 25–34-year-olds reached their lowest point since 2017.

• IDRs remain the defining force: Although usage has declined from its 2022 peak, IDRs still account for nearly 60% of balances—explaining why outstanding debt continues to grow even as loan counts fall.

• Delinquencies are stabilizing: After an early-year surge, Q3 saw a meaningful decline in delinquency rates driven by organic resolutions, with 30–90 day delinquencies now below pre-COVID levels.