(NewsNation) — More than a quarter of the nation’s 40 million federal student loan borrowers had their repayment progress paused in the third quarter of 2025, either through forbearance or deferment.
Higher education analyst Mark Kantrowitz told NBC News he found that 10.3 million borrowers were in forbearance in the third quarter of this year, compared to 2.9 million last year. Another 3.4 million borrowers deferred their loans in Q3 2025, up from 3.2 million.
Time spent in forbearance or deferment can be costly; with an average balance of about $39,000 at a 6.7% interest rate, borrowers rack up about $219 a month in interest charges alone, Kantrowitz said.
The federal government’s fiscal year starts Oct. 1; its third quarter runs from April 1 to June 30.
Economic hardship deferments also doubled, rising from 50,000 in the third quarter of 2024 to 100,000 in Q3 2025, Kantrowitz calculated, citing U.S. Department of Education data. Unemployment deferments also rose to 180,000 from 140,000.
Spike in pauses follows repeal of Biden’s SAVE plan
Consumer advocates argue that many borrowers can’t afford the repayment options currently available. It is attributed, in part, to the Trump administration striking down President Biden’s SAVE, or Saving on a Valuable Education, repayment plan this summer.
Under the plan, some borrowers had student loan payments as low as $0.
While the forbearance is still in place, the Trump administration has restarted interest accrual for those on the plan, encouraging borrowers to consider alternative options.
While some borrowers may be opting to keep their payments paused, others who want to get out of the SAVE forbearance are struggling to do so, Kantrowitz said.
Last year, the plan saw more than four million borrowers sign up before it was put into forbearance due to the ruling of the 8th Circuit Court of Appeals striking it down.
As of July, the Education Department had a backlog of more than 1.3 million applications from borrowers trying to get into an income-driven repayment, according to court documents.
Risk of wage garnishment over student loan debt
Overall, nearly 43 million borrowers owe more than $1.6 trillion in student debt, the Education Department said in April.
Defaults are expected to climb. TransUnion estimated that roughly three million borrowers would default by August, triggering the risk of wage garnishment of up to 15%, with another two million on track by this month.
After the pandemic-era pause, which shielded borrowers from credit score damage, ended last fall. Since then, millions have seen their credit ratings decline as missed payments pile up.
Borrowers who have fallen behind can come up with a repayment strategy using the government’s Loan Simulator tool here.
The Associated Press contributed to this report.
