With the rising cost of higher education, more students and families are turning to federal student loans to bridge financial gaps. However, borrowing for education comes with its own costs, and understanding these costs is vital for long-term financial well-being.

U.S. student loan debt reaches $1.6T as delinquencies rise to 7.74%. Click for my look at the data and what the rising debt levels mean for the economy.

Student loan delinquencies soared in early 2025, impacting millions of borrowers' credit scores as unpaid debts climb to $1.63 trillion. Image (c) Consumer

Federal student loans typically offer the lowest interest rates, but they can only finance so much of one's education. Oftentimes, borrowers also need to take out a private student loan in ...