The report put outstanding student-loan debt at $1.65 trillion. Total household debt stood at $18.77 trillion at the end of June, down $13 billion, or 0.1%, from the first quarter. That small decline left reported household borrowing close to its record level.

The figures arrive as borrowers navigate repayment obligations and new federal repayment-plan choices that became available July 1, 2026. Because the New York Fed data cover the second quarter, they do not show whether those new plans will reduce future delinquency.

Credit-card and auto debt also increased

Non-housing debt rose by $48 billion during the quarter. Credit-card balances increased by $21 billion, while auto-loan balances rose by $28 billion.

The New York Fed’s Household Debt and Credit report is based on an anonymized, nationally representative sample drawn from Equifax credit-report records. It measures balances appearing on credit reports rather than surveying borrowers about their financial situations.

The report also said mortgage balances shown on credit reports fell by $74 billion during the quarter, largely because of a gap connected to mortgage-servicer transfers. Without that reporting issue, mortgage debt would have been roughly flat, the New York Fed said. That makes the small overall decline in reported household debt difficult to interpret as a broad reduction in borrowing.

Delinquency is not the same as federal default

The 10.6% figure is the share of student-loan balances that were 90 or more days past due. It is not the percentage of individual borrowers in federal default.

Delinquency can develop in stages. A payment may first become 30 days late and later reach 90 days past due. For most federal student loans, Federal Student Aid generally defines default as failing to make a scheduled payment for more than 270 days. A borrower can therefore be seriously delinquent without yet meeting the federal definition of default.

Once a federal loan is in default, the consequences can include negative credit reporting and collection activity. Federal Student Aid says that if a defaulted loan is consolidated, the default record and earlier late payments may remain on a credit history for up to 10 years. If the borrower completes a rehabilitation agreement, the Education Department will ask credit-reporting agencies to remove the default record after the ninth rehabilitation payment, although earlier late payments can remain.

If a borrower has been without a payment for more than 360 days and does not resolve the default, the government may use involuntary collection tools. Those tools can include administrative wage garnishment of up to 15% of disposable pay and a Treasury offset that withholds certain federal payments, such as a tax refund. These actions do not automatically affect every borrower in default.

New repayment options took effect July 1

A U.S. Department of Education fact sheet dated July 1, 2026, says federal borrowers can enroll in a new Tiered Standard repayment plan or an income-driven Repayment Assistance Plan, known as RAP.

The fact sheet describes Tiered Standard as offering fixed repayment terms of 10, 15, 20 or 25 years based on the amount borrowed. It describes RAP as setting payments according to income, with payments generally ranging from 1% to 10% of income and possible reductions for dependents. Eligibility and availability can vary, so borrowers should confirm their options through StudentAid.gov and the official repayment calculator.

What borrowers should check now

• Check whether each federal loan is current, delinquent or in default through StudentAid.gov and the servicer listed in the account.
• Contact the servicer before reaching 270 days past due if payments are becoming difficult.
• Compare available repayment plans and confirm eligibility before enrolling.
• If a loan is already in default, ask about consolidation, rehabilitation or a repayment agreement, including how each choice affects credit reporting and collections.
• Watch for notices about wage garnishment or Treasury offset and use the official hearing or dispute procedures when appropriate.
• Be cautious of companies seeking enrollment, subscription or maintenance fees to help with federal-loan relief. Start with official federal services instead.

The New York Fed’s latest numbers show student-loan repayment problems worsened slightly even as total household debt barely changed. For borrowers, the key question is whether a missed payment remains a temporary delinquency or progresses toward federal default, where credit and collection consequences can become more serious.

Sources

• Federal Reserve Bank of New York, Quarterly Report on Household Debt and Credit, 2026:Q2
• Federal Student Aid, Student Loan Default and Collections FAQs
• U.S. Department of Education, July 1, 2026 repayment-plan fact sheet
• Associated Press, Graphics chart the surge in defaults on federal student loans

The Senate Banking Committee minority announced the request on July 17, 2026, saying the updates had made it more difficult for consumers to submit complaints. The senators asked Acting CFPB Director Russell Vought to explain the changes by July 30. The reviewed sources do not show a public response from Vought by August 4.

What changed in the complaint process

The CFPB says it added two-factor authentication for people creating online accounts. Users must verify an email address and mobile phone number. The current complaint page also asks for a consumer’s name, email address, phone number and mailing address.

People filing on behalf of someone else must identify their relationship to that person. The CFPB says companies may require signed, written authorization before responding to someone other than the customer.

Consumers reporting inaccurate or incomplete information from a credit or consumer-reporting agency face an additional step. They must first dispute the problem directly with the reporting agency and attest that the dispute is no longer pending or that more than 45 days have passed.

That requirement does not apply to every type of CFPB complaint. It applies to complaints about inaccurate or incomplete information reported by a credit or consumer-reporting agency. The CFPB’s notice says a complaint may be discontinued if the company tells the bureau that the consumer did not first file a direct dispute.

Why the CFPB says it made the updates

In a June 24 explanation, the CFPB said credit-reporting complaints rose from more than 150,000 in 2019 to more than 5 million in 2025, an increase of more than 3,700 percent.

The bureau attributed the changes to record complaint volume, privacy and identity-protection concerns, inconsistent company response categories and what it described as suspected misuse involving bots, credit-repair organizations, social-media influencers and artificial-intelligence tools. Those are the CFPB’s explanations; the reviewed material does not independently establish that each factor caused the increase.

The agency also said it was correcting problems in the complaint system so its data would be more useful. It has described address validation and some additional administrative response categories as planned or exploratory rather than fully implemented.

What the senators are challenging

Kim and Warren argue that additional notices, authentication steps and prerequisites could discourage legitimate consumers from reporting problems. They also questioned whether the changes could make it easier for credit-reporting companies to avoid or delay scrutiny.

The lawmakers’ criticism is not a court finding. The reviewed documents show a congressional challenge to the policy and an agency explanation of its purpose, not a legal ruling that the portal denies access or violates consumer rights.

What consumers should prepare

Consumers can still file complaints involving checking and savings accounts, credit cards, credit reports, debt collection, mortgages, loans, money services and other financial products listed by the CFPB.

• Have an email address, mobile phone number and mailing address available for online submission.
• If filing for another person, identify the relationship and be prepared to provide signed, written authorization if requested.
• For an inaccurate or incomplete credit-report entry, dispute it directly with the reporting agency first. Wait until the dispute is no longer pending or until 45 days have passed before filing with the CFPB.
• Gather important dates, amounts, account details, communications and supporting documents. The CFPB says attachments are limited to 50 pages.
• Describe the problem clearly because the CFPB generally does not allow a second complaint about the same problem.

The complaint process is not a guarantee of compensation or a required resolution. The CFPB generally sends complaints to the company for a response, refers some matters to another agency and allows consumers to review the company’s response. Companies generally respond within 15 days, although some final responses can take up to 60 days.

Complaint information may be shared with companies and, consistent with applicable law, certain federal, state and local agencies. The CFPB publishes non-identifying information in its Consumer Complaint Database. The bureau has also said that high volume and inconsistent response categories have affected the reliability of some complaint data.

What remains unanswered

The senators’ July 30 deadline sought more detail about the rationale, implementation and effects of the portal changes. The reviewed sources do not show how many complaints have been rejected or returned under the new requirements, or whether the changes have measurably reduced legitimate consumer complaints.

Consumers who have difficulty filing online can call the CFPB at (855) 411-2372. Before submitting, they should organize the relevant records, keep copies of the complaint and save any company response.

Sources

• Senate Banking Committee letter announcement
• CFPB explanation of complaint-system changes