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

iStock; BI Sarah Bundy has been in and out of default on her student loans for nearly three decades.She borrowed for college in the mid-1990s, but dropped out as her loan balance became unaffordable. At the time, it was $39,000. Now, it's $60,000.The 55-year-old is hoping a "blue wave" will pave the way for Democratic legislation to shield borrowers at risk of default."At my age, I can never get ahead of this," Bundy said. "So I'm just trying to scooch under the wire as long as I can."Roughly one of every six adult Americans has federal student loan debt, according to Federal Student Aid. And some 16% of federal and private borrowers were 60 or more days late on their payments in 2026, according to an analysis by the Urban Institute.Student-loan payments add to the squeeze from groceries and housing in an election increasingly centered on the cost of everyday life. High utility bills and gas prices are an added strain, especially as inflation is outpacing pay hikes.Economic concerns are also reshaping debates over AI, with politicians reconsidering their support for data centers amid a backlash.For borrowers, the pressure is particularly acute, and elevated student-loan delinquency rates overlap with some of the country's most competitive races.Texas and Ohio, home to closely-contested Senate races, both had higher-than-average non-payment rates. In the House, nine battleground districts as identified by the Cook Political Report as of Friday afternoon had worse nonpayment rates than the national average — some 28% of borrowers are delinquent in Texas's 34th District, and 25% in North Carolina's 1st. Meanwhile, federal student-loan defaults, which typically occur after 270 days of nonpayment, are at a record high. While involuntary collections on defaults, including wage and federal benefit garnishment, have been paused for over a year, Democratic lawmakers have been pushing for legislation to protect borrowers once those consequences resume. Still, even a strong election for Democrats would likely leave them without sufficient numbers to override a presidential veto.As of June 30, 9.3 million borrowers were in default, and an additional 1.5 million were in late-stage delinquency, according to Federal Student Aid. Roughly 14% of the $1.7 trillion student-debt load in the US is in default, or $234 billion.Republican lawmakers have expressed support for President Donald Trump's student-loan changes, which they said will help borrowers repay their loans. Sen. Roger Marshall, who is up for reelection in Kansas, previously said that Trump's "big beautiful" spending legislation "made transformational reforms to student loans."Student-loan borrowers have told Business Insider that they're worried about the consequences of defaulting, primarily through losing a chunk of their paycheck, Social Security payments, and tax refunds. Those concerns are exacerbated by the anticipated higher monthly bills under Trump's repayment overhaul."All we can do is keep pushing for every little bit of progress we can get on this," Bundy said.A student-loan default waveLuke Helton, a student-loan borrower in Tennessee, previously told Business Insider that the only way he can afford his expected $600 payment increase is by digging into his retirement.While he voted for Trump because he believed in the administration's campaign promise to put America first, his student loan challenges have him second-guessing his vote."They talked a big game about caring about the little people, and they just haven't," Helton said.The defaulted student-loan portfolio itself is undergoing changes. The Department of Education is moving forward with its plan, announced in March, to transfer defaulted student-loan accounts to the Treasury Department. The transfer will occur in phases, with the most recent step being the launching of a new online portal to help borrowers return to good standing and access default resources.Education Secretary Linda McMahon said that the department "was never intended to serve as the fifth largest bank in America, and that's exactly why we partnered with the Treasury Department to improve the administration of federal student aid programs that millions of American students, families, and borrowers rely on."Democratic lawmakers have raised concerns about the Treasury's capability to manage federal student loans. Over 60 of them pushed to halt the transfer and continue the pause on involuntary collections to continue giving borrowers relief as they navigate Trump's repayment overhaul. Sen. Bernie Sanders also led some of his colleagues in introducing a bill to prevent older borrowers and borrowers with disabilities from facing Social Security garnishment if they default.Bundy recently went to Washington, DC, to urge New York lawmakers to support Sanders' bill. She's one of the millions of borrowers transitioning off the Biden-era SAVE plan, which offered lower monthly payments. She said she's not sure how she'll afford payments once they resume, and she's worried that she — and millions of other borrowers — could fall behind."When these garnishments start back up, it's really going to throw us pretty far back down," Bundy said. "I don't think people realize just how brutal it really is out there."Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com. Read next Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Ayelet Sheffey is a senior reporter at Business Insider covering education and student loans. She has appeared on shows including C-SPAN, CBS News, NPR, and SiriusXM to discuss her student-loan coverage, including her investigation on private student-loan lending.She graduated from American University in 2020 with a bachelor's degree in journalism. You can reach her via email at asheffey@businessinsider.com or message her securely on Signal at asheffey.97. You can also find her on LinkedIn, and on Reddit at the username u/Ayelet_Sheffey_BI. Madison Hoff is a reporter on Business Insider’s economy team. She covers the labor market, inflation, spending, and other data. In addition to covering new estimates and trends, her workforce reporting includes career pivots, job searching, and side hustles.She also covers downsizing, particularly people selling their houses to pursue RV living. She has also reported on how much teachers spend out of pocket and what it’s like being a caregiver.Her stories often cover the state of the economy, what experts are saying, and how people are navigating the workplace or their careers.Previously, she was a junior reporter and data editorial fellow on the Strategy team. Student Debt Student Loans