Student loan debt report points to mounting pressure as 2027 approaches, based on new Credit Karma data

Americans carrying student loan debt are facing one of the biggest overhauls to federal repayment programs in years, and for many borrowers the changes are unsettling.

Among the major shifts, the widely used SAVE repayment plan has ended, forcing millions to transition to new plans that could bring heavier monthly bills as 2027 nears.

Intuit Credit Karma examined what is happening in the student loan market in 2026.

Key takeaways from the report

Credit Karma’s analysis of TransUnion data covers 24.2 million members with open student loan debt at the end of the third quarter of 2026.

1. Borrowers with loans in deferment, including about 10.1 million Credit Karma members with student loans, appear especially financially vulnerable as many prepare to restart payments heading into 2027.

• 14.7% are behind on other debt, compared with 8.2% of those who are fully current and actively repaying their loans
• The median credit score for the deferred group is 37 points lower than the fully current group’s score, 646 versus 683

2. Borrowers with the smallest student loan balances are the most likely to be delinquent.

• Student loan borrowers with less than $10,000 in debt have the highest delinquency rate.
• This mirrors broader consumer debt patterns, where many accounts that end up in collections are relatively small credit card, phone or utility balances.

3. Gen Z and millennials together account for nearly three-quarters of student loan borrowers, but Gen X has a slightly higher delinquency rate than either younger generation.

• The Gen X student loan delinquency rate is 10.4% of members, compared with 9.7% for millennials and 9.6% for Gen Z.
• Gen Z has the largest share of members with loans in deferment, which fits their stage of life.

The Credit Karma student loan population: a 2026 snapshot

Credit Karma has 24.2 million members with open student loans totaling more than $1 trillion.

Roughly 95% of those loans are federal rather than private. For context, Federal Student Aid says about 42.3 million people nationwide have federal student loans.

To better understand this population, Credit Karma divides members into three groups for analysis based on the status of their student loans.

Population segments

How many borrowers are fully current, deferred or delinquent?

By the final quarter of 2026, more than 48% of Credit Karma members with student loans were fully current on every loan, while close to 10% were delinquent.

Another large share, more than 41%, had at least one student loan in deferment.

Borrowers with deferred loans show more signs of stress than those paying on all of their loans, including a much lower median credit score and a larger share behind on other debt.

The smaller delinquent group is under the greatest pressure, with nearly a quarter struggling with other debts as well.

This split matters because as former SAVE borrowers move into new repayment plans, many deferred borrowers may become fully current in the near term. Over time, however, the delinquent group could expand.

It is not clear how many Credit Karma members were enrolled in SAVE, though the U.S. Department of Education estimated that 7.5 million borrowers nationwide were on the plan.

Student loan data by generation

Younger generations generally have lower balances and a larger share of deferred loans. One likely reason is that they have had less time to accumulate debt and fewer have begun repayment.

The table below shows the share of each generation that is fully current, deferred or delinquent, along with total and median balances and median credit scores.

Which generations are facing the most student loan delinquency?

This table breaks down student loan delinquency by generation, showing how many borrowers in each group are delinquent, and what share are 90 to 269 days past due, or 270 days or more past due and in default.

Severity of student loan delinquency by generation

Federal loan servicers usually do not report late accounts to credit bureaus until they are 90 days past due. At that point, the late mark can appear on a credit report and remain there for up to seven years. Once a federal student loan reaches 270 days past due, it goes into default. If the problem remains unresolved beyond 360 days, the government can garnish wages or pursue other collection efforts, including seizing tax refunds.

Typical Gen Z borrower with student loan debt

Gen Z makes up about a quarter of Credit Karma members with student loans. They tend to carry smaller balances than millennials, Gen X or baby boomers, and they also have the highest deferment rate of any generation, which is consistent with their stage of life.

The table below breaks down Credit Karma’s Gen Z members with open student loans by loan status and shows average and typical credit scores, along with the median balance per borrower.

The next table shows how Gen Z members with student loans are handling other forms of debt.

In line with the broader student loan population, Gen Z borrowers with deferred loans are more burdened by other debts, including personal loans and credit cards, than Gen Z student loan borrowers overall.

Gen Z student loan borrowers behind on other debt

Typical millennial borrower with student loan debt

Millennials account for about half of Credit Karma members with student loans, and most are now in their 30s or early 40s.

The table below breaks down Credit Karma’s millennial members with open student loans by loan status and shows average and typical credit scores, along with the median balance per borrower.

As with Gen Z and the broader student loan population, millennials whose loans are in deferment fall behind on other debt more often than millennials with student loans overall.

Mortgage and auto payment delinquency plays a larger role for millennials than it does for younger peers.

Millennial student loan borrowers behind on other debt

Student loan debt and delinquency by balance

The table below shows that the highest delinquency rates are concentrated in the two lowest debt bands.

That may seem surprising, but a Brookings Institution study on student loans found that the smallest balances often belong to people who left school before finishing, and that lower earnings were a major factor in their default rates. The broader lesson is that falling behind often has more to do with a borrower’s financial footing than with the amount owed.

Other consumer debts show a similar pattern. Most accounts that end up in collections are small. In 2026, the typical non-medical debt in collections on Credit Karma members’ credit reports was under $700, mostly from credit cards and basic bills such as utilities and phone service. Small unpaid bills can signal a tight budget, where even routine expenses are difficult to cover.

Student loan data: Credit cards and other debt

The next table compares how often borrowers in each student loan group fall behind on other debts, such as credit cards and loans, with the rate among members who do not have student loans.

Even with student loans paused, the deferred group falls behind on other debt more often than members without student loan debt.

The fully current group stands out as the healthiest, even more so than borrowers whose debt does not include student loans.

Student loan data: Credit scores

As a group, student loan borrowers have average and median credit scores that are noticeably lower than those of borrowers whose debt does not include student loans.

But when looking only at borrowers who are fully current and actively repaying, the picture changes: that group has a better average score than people without student loans, and a nearly identical median score.

Student loan data: Score bands

Score bands can only explain so much about delinquency, since falling behind on a credit account also lowers a credit score.

Still, the table below helps show how much trouble borrowers with lower scores are having with other debts, such as credit cards and loans, including personal, auto and home loans.

Methodology: Credit Karma student loan data

This report uses TransUnion credit reports for 24.2 million Credit Karma members with open student loans as of Sept. 30, 2026. Credit Karma counts open accounts that TransUnion classifies as student loans, regardless of who reports them. Generations are based on birth year: Gen Z, 1997 and later; millennials, 1981 to 1996; Gen X, 1965 to 1980; baby boomers, 1946 to 1964; and the Silent Generation and older, before 1946. Each member is placed into one of three groups — fully current, deferred or delinquent — based on the loan in the worst status. Fully current means all loans are in active repayment and in good standing. Deferred means at least one loan is in deferment or forbearance and none are reported past due, though current loans may also be included. Delinquent means at least one loan is 90 or more days past due, though other loans may be current or deferred; members are classified only by their worst loan. Members whose worst student loan was reported 30 to 89 days past due, fewer than 1%, are not included in any segment, so totals may not add to 100%. Credit scores are VantageScore 3.0 as of early October 2026; members without a score are excluded from score figures. Being behind on other debt means being at least 30 days past due. Members without student loan debt have at least one open credit account but no student loans. Collections figures refer to non-medical accounts in collections on members’ TransUnion credit reports.

FAQs about student loan debt

What is the typical student loan debt?

Among Credit Karma’s 24.2 million members with student loans, the median total balance was about $23,000 as of September 2026. That is in line with the Federal Reserve’s most recent Survey of Consumer Finances, which found a median balance of about $24,500 among families with student debt in 2022.

How can delinquent student loans affect your credit score?

Loan servicers usually do not report late federal student loan payments until they are 90 days past due. Once that happens, your score can drop the same way it would with other credit accounts. If you are concerned, review student loan resources or consider contacting the nonprofit TISLA for free student loan guidance.

How can I get forgiveness on a student loan?

One major federal route to forgiveness is Public Service Loan Forgiveness, or PSLF, which may be available to people who work full time for an eligible government agency or nonprofit. PSLF can forgive the remaining balance on federal Direct Loans after 120 qualifying monthly payments. You can review the details on Federal Student Aid’s forgiveness page.

What is the Standard Repayment Plan for federal student loans?

The Standard Repayment Plan divides your balance into fixed monthly payments for up to 10 years, or 10 to 30 years for consolidation loans. If you do not choose a repayment plan, your servicer will place you on this one. It usually means higher monthly payments, but less total interest over time. Federal Student Aid can help you compare repayment options.

What is the difference between a delinquent and a defaulted federal student loan?

A federal student loan is delinquent as soon as you miss a payment, but servicers typically do not report it as late to the credit bureaus until it is 90 days past due. Once reported, it can damage your credit. After 270 days past due, the loan enters default, which can eventually lead to wage garnishment and the seizure of tax refunds.