Student-loan borrowers are facing a key issue ahead of the midterms: affording their new monthly payments

Over 10 million student loan borrowers are currently behind on their payments, with some expressing optimism that the upcoming midterms could lead to policy changes to protect those who fall into default. According to an analysis by the Urban Institute, states with close Senate races, such as Texas and Ohio, have higher-than-average rates of nonpayment.

One such borrower, Sarah Bundy, has been in and out of default on her loans for nearly three decades due to the increasing unaffordability of her loan balance. Bundy, now 55 years old, hopes that a "blue wave" in the midterms will result in Democratic legislation to shield at-risk borrowers. Around one in six adult Americans hold federal student loan debt, and in 2026, 16% of federal and private borrowers were 60 or more days late on their payments.

The rising costs of everyday necessities, like groceries and housing, coupled with inflation surpassing pay increases, exacerbate the financial strain on borrowers. In key races like Texas and Ohio, elevated nonpayment rates coincide with contentious Senate contests. The record-high federal student loan defaults, which typically occur after 270 days of nonpayment, are also a concern.

While involuntary collections on defaults have been paused for over a year, Democratic lawmakers are pushing for legislation to protect borrowers once those consequences resume. Roughly 9.3 million borrowers are currently in default, with an additional 1.5 million in late-stage delinquency. Republican lawmakers have shown support for President Trump's student loan changes, but the prospect of a Democratic victory in the midterms might not be enough to override a veto.

Many borrowers are worried about the impact of defaulting, particularly the loss of a portion of their paycheck, Social Security payments, and tax refunds, especially as their monthly bills are expected to rise under Trump's repayment overhaul.