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Household Debt Reaches $18.2 Trillion as Student Loan Delinquencies Trigger Credit Score Plunge

BLACKPRESSUSA NEWSWIRE — The figures are a dramatic increase from the previous delinquency rate, which had remained below 1 percent due to the years-long pause in federal student loan payments.

Published

5 months ago

June 12, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit reveals a sharp rise in total household debt, reaching $18.20 trillion in the first quarter of 2025. While some categories of debt, such as credit card and auto loans, experienced modest declines, student loan balances jumped by $16 billion to $1.63 trillion, with a notable surge in delinquencies following the end of federal student loan payment protections. According to the report, nearly six million student loan borrowers—representing about 14 percent—were 90 or more days delinquent or in default between January and March 2025. In total, 13.7 percent of borrowers were at least 90 days past due, while 23.7 percent were behind but not yet seriously delinquent. The figures are a dramatic increase from the previous delinquency rate, which had remained below 1 percent due to the years-long pause in federal student loan payments.

The payment freeze, initially introduced during the COVID-19 pandemic, lasted 43 months. Although payments resumed in October 2023, the U.S. Department of Education granted a 12-month “on-ramp” period during which missed payments were not reported to credit bureaus. That grace period ended in late 2024, prompting a flood of newly reported delinquencies in early 2025. The consequences have been swift and severe for millions of borrowers. According to the New York Fed, more than 2.2 million individuals newly marked as delinquent have seen their credit scores fall by over 100 points, while over 1 million have experienced drops of at least 150 points. These drops in credit scores threaten borrowers’ access to affordable financing options across the board.

“Your credit score is one of the most important numbers in your financial life,” Ted Rossman, senior industry analyst at Bankrate, told Newsweek. The New York Fed found the average drop for newly delinquent student loan borrowers was 177 points for those who had scores above 720. Borrowers with credit scores between 620 and 719 saw an average decline of 140 points, while those below 620 dropped by an average of 74 points. For many, the impact of these declines will reverberate for years. “There is very little in life that is more expensive than having bad credit,” said Matt Schulz, chief consumer finance analyst at LendingTree. “It can literally cost you tens of thousands of dollars or more over the course of your life.”

Newsweek noted that more than 2.4 million newly delinquent borrowers previously had credit scores above 620, making them eligible for traditional credit cards, auto loans, and mortgage financing. Falling below that threshold could now disqualify them from such products or saddle them with higher interest rates. The implications are especially dire for prospective homebuyers. The minimum credit score for a conventional mortgage is 620, and borrowers at that level currently face a 30-year fixed mortgage rate of 7.89 percent, according to Experian. In contrast, borrowers with a credit score of 780 pay 7.07 percent. For a $300,000 loan, that difference could amount to $60,000 more in interest over the life of the loan.

“Home prices and interest rates are already sky-high. Having less-than-perfect credit means that you may get stuck with an interest rate that’s even higher than the average,” Schulz said. “And, of course, a low enough credit score may mean that you don’t even get the mortgage at all.” Student loan delinquency also disproportionately affects older borrowers. The New York Fed reported that the average age of a delinquent borrower has risen from 38.6 to 40.4 years old. Delinquency rates are lowest among borrowers under age 30, indicating that older millennials—many of whom already face economic headwinds—are struggling most with resumed payments.

Non-housing debt fell overall by $38 billion, or 0.8 percent, in the first quarter. Credit card balances decreased by $29 billion to $1.18 trillion, and auto loan balances dropped by $13 billion to $1.64 trillion—only the second quarter-over-quarter decline since 2011. Other consumer loans, including retail cards, fell by $12 billion. Despite those declines, total household debt continued to rise due to increases in housing-related balances. Mortgage balances grew by $199 billion, reaching $12.80 trillion, while balances on home equity lines of credit (HELOCs) rose by $6 billion to $402 billion. HELOC balances have now increased for 12 straight quarters and are $85 billion above the low recorded in early 2022.

Aggregate delinquency rates also rose, with 4.3 percent of all outstanding debt in some stage of delinquency. While delinquency transitions remained stable for auto loans, credit cards, and other debts, student loans were the clear driver of the recent surge in overall delinquency. Experts advise borrowers who have damaged their credit scores to take gradual, responsible steps to rebuild. “It’s about doing the right things over and over, and unfortunately, a single major mistake can undo years of consistent work,” Schulz said. Rossman added that staying current on student loan payments and all other obligations is key. “Consider getting on a parent or spouse’s credit card as an authorized user or applying for secured credit cards and credit-builder loans,” he said. “Those are safe tools to help start the rebuild.”

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Michael: The King of Pop’s Story Returns to the Big Screen

BLACKPRESSUSA NEWSWIRE — The curtain has finally lifted on one of Hollywood’s most anticipated films. Lionsgate has unveiled the official trailer and release date for “Michael,” the sweeping biopic about Michael Jackson that has been years in the making.

Published

4 days ago

November 6, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The curtain has finally lifted on one of Hollywood’s most anticipated films. Lionsgate has unveiled the official trailer and release date for “Michael,” the sweeping biopic about Michael Jackson that has been years in the making. Directed by Antoine Fuqua, the film will arrive in theaters on April 24, 2026, with the singer’s nephew, Jaafar Jackson, stepping into the spotlight to portray his legendary uncle.

The trailer wastes no time rekindling the aura of Jackson’s genius. Opening with a studio scene between Jackson and his longtime producer Quincy Jones, played by Kendrick Sampson, the clip builds from a quiet, familiar rhythm to the electrifying pulse of “Wanna Be Startin’ Somethin’.” Viewers catch glimpses of the singer’s childhood, flashes of “Thriller,” and the silhouette that redefined pop culture. Each frame reminds fans of why Jackson remains unmatched in artistry and influence. The cast surrounding the late pop king’s nephew, Jaafar Jackson, reads like a who’s who of Black entertainment and music history. Colman Domingo plays Joe Jackson, Nia Long portrays Katherine Jackson, and Larenz Tate takes on the role of Motown founder Berry Gordy. Laura Harrier portrays music executive Suzanne de Passe, while Kat Graham embodies Diana Ross. Miles Teller plays attorney John Branca, a towering entertainment lawyer and longtime Jackson confidant who later became co-executor of his estate. The film’s journey to release has been as complicated as the icon it portrays. Production wrapped in 2024, but legal hurdles over depictions of past controversies forced extensive reshoots and editing delays. Even so, Fuqua’s film now appears ready to reclaim the narrative, focusing on Jackson’s creative ambition and humanity beyond tabloid noise. IndieWire reported that the film had faced “a massive legal snafu” over a disputed storyline but was retooled to center the music and legacy that defined generations.

Maven. Photo Credit: Glen Wilson

“Michael” promises more than a chronological retelling. It aims to explore how a child star from Gary, Indiana, became the world’s most influential entertainer. The script, written by Oscar-nominated John Logan, traces Jackson’s early years with the Jackson 5 through the triumphs and isolation of global superstardom. With Fuqua’s cinematic eye and producer Graham King—who brought “Bohemian Rhapsody” to life—joining forces with estate executors Branca and John McClain, the film is positioned as both a tribute and a restoration of Jackson’s cultural truth. Branca’s work behind the scenes has long shaped Jackson’s posthumous success. After the singer died in 2009, Branca and McClain took control of the estate burdened by debt and turned it into a global powerhouse worth billions. Under their stewardship, Jackson’s projects have generated more than $3 billion in worldwide ticket sales and landmark deals, including a $600 million joint venture with Sony earlier this year. At its heart, though, “Michael” is a story about artistry that transcends scandal. It offers a reminder that, despite the noise surrounding his life, Jackson’s music still bridges continents and generations. The trailer’s closing moments capture that spirit. As the beat of “Billie Jean” swells and Jaafar Jackson moonwalks into a spotlight, audiences are left with a familiar feeling—the awe of witnessing something timeless return home.

“Michael” opens worldwide in theaters April 24, 2026. See the official trailer here.

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Donald Trump Is the Biggest Loser

BLACKPRESSUSA NEWSWIRE — The Trump Brand took a significant hit as it was swept up in the Democratic blue wave of the election last night.

Published

5 days ago

November 5, 2025

Oakland Post

By April Ryan

The Trump Brand took a significant hit as it was swept up in the Democratic blue wave of the election last night.

Chris Jones, Democratic candidate for U.S. House of Representatives (AR-02), says, “Last night was electric, and it was unquestionably a wave.” Democrats won big in what is widely considered a repudiation of Trump’s 9 months at the White House in his second term.

In the state of Virginia, which produced the first big election night win and saw the election of the first woman governor, Democrat Abigail Spanberger, 56% of Virginia’s residents disapprove of President Trump. In New Jersey, 55% of state residents disapprove of the president; in New York, 69% disapprove; and in California, 63% disapprove of the president. The Trump brand or his support for any candidates did nothing to benefit those he endorsed in this election. They actually lost in each race he publicly put his name behind. Trump endorsed former New York Democratic Governor Andrew Cuomo, who lost the New York mayor’s race in his run as an independent. And New Jersey Republican Jack Ciattarelli, who ran for governor with the presidential endorsement, also lost his prospective race.

The next question is, will the democratic momentum be sustainable? Jones further explained, “This can become a 2026 tsunami, but turning a wave into a tsunami takes energy. A lot of energy. It doesn’t just happen. The conditions are there. Now we have to work!”

Some Democrats would argue that the work is already underway. The pushback against Trump’s national redistricting efforts received a thumb in the eye from California voters. Prop 50, California Governor Gavin Newsom’s counterbalance to President Trump’s redistricting efforts, passed in California last night. Although Trump’s name was not on the ballot last night, his Republican policies were. The United States has now entered the longest government shutdown in its history. Forty-two million Americans are not getting SNAP benefits. Economists are acknowledging that the government shutdown is contributing to the rise in delinquent debt in the student loan, automotive, and credit card industries. These items are among the negatives Americans are protesting against.

Compounding Trump’s political problems is a tariff battle that’s directly impacting pocketbooks. The day after the elections, the Trump administration was arguing before the US Supreme Court in favor of the president’s tariff powers. Meanwhile, President Trump‘s poll numbers are underwater, standing at a 37% national disapproval rate

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Historic Beatdown: Democrats Sweep Virginia as Speaker Don Scott and Jay Jones Make History

BLACKPRESSUSA NEWSWIRE — In a clear rejection of the policies of President Donald Trump, history repeated itself in Virginia.

Published

5 days ago

November 5, 2025

Oakland Post

By Lauren Burke

In a clear rejection of the policies of President Donald Trump, history repeated itself in Virginia. Democrats once again swept all three statewide offices as they did in 2017 during Trump’s first term. Abigail Spanberger easily won the office of Governor, and State Senator Ghazala Hashmi won her race over John Reid to be the next Lieutenant Governor. The victories occurred against the backdrop of a historic win in Virginia by Spanberger that will give Virginia its first woman Governor.

Spanberger’s widely predicted win over Republican gubernatorial nominee Winsome Earle-Sears was called 17 minutes after the polls closed in Virginia at 7 pm. Former Delegate Jay Jones won his race against incumbent Attorney General Jason Miyares. His victory means Jones will be the first Black Attorney General in Virginia’s history. Jones’ win was particularly noteworthy since the last month of his campaign was consumed by the issue of private text messages from 2022 to Republican Delegate Carrie Coyner. Republicans ran a non-stop barrage of negative ads against Jones for a month.

Del. Coyner lost her bid for re-election to Delegate-elect Lindsey Dougherty. The Dougherty race was the number one target for House Speaker Don Scott and his campaign lieutenant, Delegate Dan Helmer. Coyner’s defeat was one of at least 13 victories for Democrats who have now added to their ranks in the Virginia House to historic margins. When the Virginia General Assembly returns to session in January, there will be at least 64 Democrats in the chamber. The widespread Republican defeat is a testament to a combination of historic fundraising, Democrats running in all 100 seats, dislike of President Trump’s policies, and an ineffective top of the ticket featuring Lt. Gov. Earle Sears.

+13: Speaker Scott and Del. Helmer Hit Historic Numbers in Fundraising and Power

As the evening ended, a glaring historic fact became clearer: The Virginia House of Delegates will expand to a historic number. The change means the largest Democratic House chamber in the modern era. There were several notable wins by Democrats running for the Virginia House. They include Virgil Thornton, Lilly Franklin, and Kim Pope Adams. Speaker Don Scott and his campaign chair, Dan Helmer, undertook a record fundraising effort never before seen in Virginia’s history. The moment of success for Virginia Democrats will be viewed as a positive signal for Democrats moving into the 2026 elections.