I asked AI....to add up the numbers.....nearly 12 million student loan borrowers in the US are currently are delinquent or in some type of default on their payments as of late 2025.
How it adds up? This includes approximately 5.5 million in default, 3.7 million more than 270 days delinquent, and 2.7 million in earlier stages of delinquency.
The total outstanding balance for delinquent and defaulted borrowers is approximately $334 billion.
So I'm predicting three things:
1. As the Trump administration pushes folks to start paying....a federal judge or two tries to halt the action....finding about 90 days later....that key words in the documents signed for the loans.....give Trump the power to collect.
2. By late summer, it's agreed upon by the Administration....that giving excessive loans out is stupid and limits of $10k per year are established....meaning most college schedules won't work for a four-year period. Some colleges start talking about a 6-to-7 year program....to get around gov't loan limits.
3. About 30 to 40 percent of people who planned to attend college in the fall of 2026....shift to a community college or technical two-year degree. This creates a massive problem for big colleges....laying off a quarter to half of their instructors. Oddly, the Democratic Party vows to protect the PhD-professor crowd....making $120k to $150k a year....with some PhD-welfare program. Trump responds that he'll assist by retraining the PhD folks....into welding, AC repair, and 'coding'.
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