Black Student Loan Default Rate Five Times Higher than Whites

A coalition of consumer, civil rights, and education organizations is urging the federal Education Department to stop garnishing wages from the nearly 9 million Americans currently in default on their student loans. New research reveals that student loan defaults are occurring at an alarming rate of one every nine seconds in 2025, nearly triple the pre-pandemic rate from 2019. The coalition argues that these aggressive collection actions disproportionately harm Black and older borrowers, with roughly one-third of defaulted borrowers being seniors and Black graduates being five times more likely to default than white borrowers.