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Report
en_GB
Educational lending is entering a period of heightened risk as pandemic-era forbearance ends, forgiveness options shrink and interest resumes, setting up a "default cliff" that could redefine borrower behavior and…
US
Mortgage and Loans
simple
US Educational Lending Market Report 2025
Educational lending is entering a period of heightened risk as pandemic-era forbearance ends, forgiveness options shrink and interest resumes, setting up a "default cliff" that could redefine borrower behavior and lender exposure moving forward/
Macroeconomic headwinds – persistent inflation, elevated interest rates and a cooling job market – are inflating the true cost of higher education and eroding early-career repayment capacity, thereby stressing both federal and private portfolios.
"With student loan debt on the rise, increasing delinquency rates and significant policy changes are reshaping the educational lending landscape. Borrowers face a complex environment that's redefining access to higher education and long-term financial stability."
Vince DiGirolamo, Director, North America Reports
Educational lending is entering a period of heightened risk as pandemic-era forbearance ends, forgiveness options shrink and interest resumes, setting up a “default cliff” that could redefine borrower behavior and lender exposure moving forward/
Macroeconomic headwinds – persistent inflation, elevated interest rates and a cooling job market – are inflating the true cost of higher education and eroding early-career repayment capacity, thereby stressing both federal and private portfolios.
Government actions remain the most disruptive market driver; new federal borrowing caps and stricter income-driven repayment rules are increasingly pushing borrowers toward private lenders, employer sponsorship and alternative credentials.
Consumers are responding with caution and creativity: Gen Z is optimistic yet facing gaps in preparedness, Millennials carry the heaviest balances and older cohorts are prioritizing payoff speed, underscoring the need for segmented support strategies.
Brands have opportunities to win trust by simplifying applications, personalizing repayment paths, embedding financial coaching and partnering with employers or non-financial brands to deliver holistic debt-management ecosystems.
Long term, rising skepticism about the ROI of a traditional degree may soften demand for large loans and redirect capital toward shorter, skills-based programs – forcing lenders and institutions to rethink product design, pricing and marketing.
This report looks at the following areas:
Factors impacting the state of educational lending
Attitudes toward student loans and educational lending
Estimated total amount of student debt and expected timeframe to pay off
Methods of paying down student debt
Reasons for choosing private student loan lenders
How parents have assisted children with paying for higher education
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