Student loan defaults surge in Wisconsin, US after federal reprieve ends

The pandemic grace period has ended, along with the most generous repayment plan. Now, borrowers across the state are struggling to repay, and those who attended Wisconsin’s for-profit colleges are twice as likely to be delinquent on their loans.

The number of Wisconsinites many months behind on student loan bills has risen by nearly 50% since last fall.

That’s according to federal data analyzed by the Associated Press, which found that more than 108,000 people in Wisconsin haven’t made payments on their loans in more than 360 days.

Across the country, the number of students in student loan default has surged by millions since a four-year pandemic reprieve ended in 2024, and advocates say it’s poised to worsen as President Donald Trump’s administration has ended existing relief options.

Borrowers are placed in default after missing payments for nine months. The status triggers a raft of devastating consequences. The entire balance becomes due at once, and the loan is sent to collections, crashing the borrower’s credit score. That can make it harder to borrow, rent or even find work.

Around 34,000 Wisconsinites entered student loan default since September 2025, the AP found. Of the roughly 709,100 people in Wisconsin who hold student loans, one in seven is currently in default.

Here’s how we got here: As a pandemic relief measure, the federal government allowed borrowers to suspend student loan payments until 2023, and President Joe Biden’s administration then provided a one-year grace period. That ended in fall 2024, allowing loans to enter into default after nine months of missed payments.

A surge in defaults followed, and today around 9.5 million borrowers nationwide — over 1 in 5 — are in default, including those whose loans were well past due before the pandemic, according to the AP analysis. The previous record for borrowers in default had been 8 million in December 2019.

Meanwhile, many borrowers are facing much higher monthly payments since the Trump administration ended the SAVE repayment plan, which offered more flexibility and lower payments than any other. In its absence, borrowers will see longer repayment terms and “unpredictable payment spikes,” wrote Michele Zampini, associate vice president of federal policy and advocacy at the Institute for College Access and Success, in a February blog post.