NY FED: Federal Student Loan Balances Slightly Decrease
By Hugh T. Ferguson, NASFAA Managing Editor
The Federal Reserve Bank of New York issued its Quarterly Report on Household Debt and Credit on Tuesday, which captures total household debt for the second quarter (April 1 - June 30, 2026) and details federal student loan balances and delinquency rates.
According to the data, federal student loan balances decreased by $7 billion, taking the total outstanding balance from $1.71 trillion to $1.65 trillion.
Additionally, the student loan delinquency rate slightly increased to 10.6% of balances 90+ days past due, up from 10.3% reported in the first quarter (January 1 - March 31, 2026).
“Transition rates into serious delinquency remained mostly unchanged,” the report read. “Student loan delinquencies were an exception, with the continued impact of the re-reporting of defaulted student debt causing some distortions.”
This report does not yet account for ED’s planned transition of Saving on a Valuable Education (SAVE) plan borrowers.
In March, ED announced plans to direct the roughly 7 million borrowers enrolled in the SAVE plan to choose a new repayment plan, and on July 1, servicers began contacting borrowers with instructions to move to a “lawful” repayment plan. Borrowers were given 90 days to select a new repayment plan. If a plan is not chosen, then the borrower will be moved to the Standard Repayment Plan or the new Tiered Standard Repayment Plan.
There are several legal challenges to ED’s effort to unwind the SAVE plan, and it is unclear if these challenges will impact the department’s planned timeline.
Stay tuned to Today’s News for more information.
Publication Date: 8/13/2026
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