The Department of Education has released data regarding repayment trends following the end of the student loan payment moratorium with the intention of noting how many borrowers are making their loan payments on time and how the average payment among those making payments has “nearly” returned to its pre-pandemic level. But only 42% of borrowers with federal student loans were current on their payments as of December 2023, compared with 48% in December 2019.
Recent months have seen a significant uptick in borrowers making payments on their federal student loans. January and February recorded the highest number of borrowers paying back loans since data collection began in 2018, suggesting a return to activity levels seen prior to the pandemic. This increase coincides with the end of a 43-month payment pause, during which no payments were required.
Approximately 28 million borrowers were thrust back into repayment between October and November.
The number of borrowers who made a payment in January – 16.04 million – is the highest ever since the Department of Education began tracking that statistic. The pre-pandemic peak was 15.04 million in January of 2020. The size of the average monthly payment has also leveled off to its pre-pandemic mark. The average payment in March 2024 was $299, compared with $348 in 2019. “The fact that the average payment among borrowers making non-zero payments has returned to roughly its pre-pandemic level is an indication that similar types of borrowers are making payments now relative to prior to the payment pause,” the Department said in its report.
The Department did note that some of the performance data is skewed because individuals who were sliding into default when the pandemic struck were given a clean slate and are now considered to be current on their loans.
