More than a quarter of the nation’s 40 million federal student loan borrowers had their repayment progress paused in the third quarter of 2025, either through forbearance or deferment.

Higher education analyst Mark Kantrowitz told NBC News he found that 10.3 million borrowers were in forbearance in the third quarter of this year, compared to 2.9 million last year. Another 3.4 million borrowers deferred their loans in Q3 2025, up from 3.2 million.

Time spent in forbearance or deferment can be costly; with an average balance of about $39,000 at a 6.7 percent interest rate, borrowers rack up about $219 a month in interest charges alone, Kantrowitz said.

The federal government's fiscal year starts Oct. 1; its third quarter runs from April 1 to June 30.

Economic hardship deferments also dou

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