Nearly a third of borrowers whose federal student loans entered repayment in October 2023, following the COVID-19 pandemic extended pause, are past due on the payments, according to a newly released report from the U.S. Government Accountability Office (GAO).
The above pie chart shows the number of federal student loan borrowers in repayment by status, as of Jan. 31, 2024.U.S. Government Accountability Office/U.S. Department of Education
GAO noted that the past-due amount is part of the U.S. Department of Education’s $1.5 trillion total outstanding federal student loans for nearly 43 million borrowers —about half ($706 billion) were current and the rest (about $254 billion) were in deferment or forbearance.
The report, which provides information on the resumption of student loan repayment, describes the extent to which borrowers were current on loan payments and the extent to which they were enrolled one of the education department’s income-driven repayment plan, known as the Saving on a Valuable Education (SAVE) Plan.
GAO noted that such plans may be more costly to the government as the plan offers borrowers lower payments and potential interest savings based partly on borrower incomes.
Notwithstanding, the agency found that about a quarter of borrowers in repayment were enrolled in SAVE, accounting for a third of loan balances. That is 6.2 million borrowers who had scheduled monthly payments, 3.6 million (60%) of which were scheduled to pay $0 as of January 2024.
