Late student-loan payments are rising. Is a domino effect coming?

2026-05-14

Student loan delinquencies are beginning to spill into other parts of consumer finance as pandemic-era payment relief fully fades away. New research from the New York Fed found that among borrowers who defaulted on student loans in Q1 2026, 40% were also behind on auto loans, and 57% were delinquent on credit cards.