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• More than 108,000 Wisconsinites are in default on student loans, according to federal data analyzed by the Associated Press and shared with Wisconsin Watch. 
• The number of borrowers in default surged nationwide since 2024, when pandemic relief measures ended. 
• Advocates expect it to worsen, with borrowers facing higher monthly payments and longer repayment terms after the Trump administration ended existing relief options.
• Wisconsin student loan borrowers who attend for-profit colleges are twice as likely to be 90 days behind on payments compared to peers at public and nonprofit private colleges, AP data shows.

The number of Wisconsinites many months behind on student loan bills has risen by nearly 50% since last fall. 

That’s according to federal data analyzed by the Associated Press, which found that more than 108,000 people in Wisconsin haven’t made payments on their loans in more than 360 days.

Across the country, the number of students in student loan default has surged by millions since a four-year pandemic reprieve ended in 2024, and advocates say it’s poised to worsen as President Donald Trump’s administration has ended existing relief options. 

Borrowers are placed in default after missing payments for nine months. The status triggers a raft of devastating consequences. The entire balance becomes due at once, and the loan is sent to collections, crashing the borrower’s credit score. That can make it harder to borrow, rent or even find work.  

Around 34,000 Wisconsinites entered student loan default since September 2025, the AP found. Of the roughly 709,100 people in Wisconsin who hold student loans, one in seven is currently in default.

Here’s how we got here: As a pandemic relief measure, the federal government allowed borrowers to suspend student loan payments until 2023, and President Joe Biden’s administration then provided a one-year grace period. That ended in fall 2024, allowing loans to enter into default after nine months of missed payments. 

A surge in defaults followed, and today around 9.5 million borrowers nationwide — over 1 in 5 — are in default, including those whose loans were well past due before the pandemic, according to the AP analysis. The previous record for borrowers in default had been 8 million in December 2019.

Meanwhile, many borrowers are facing much higher monthly payments since the Trump administration ended the SAVE repayment plan, which offered more flexibility and lower payments than any other. In its absence, borrowers will see longer repayment terms and “unpredictable payment spikes,” wrote Michele Zampini, associate vice president of federal policy and advocacy at the Institute for College Access and Success, in a February blog post. 

“I am seeing despair and outrage and despondency and just a very wide mix of pretty extreme emotions, the likes of which I have not seen before,” Alan Collinge, the founder of grassroots advocacy group Student Loan Justice, told the AP. 

The federal government can garnish wages and Social Security payments from borrowers in default, but the Trump administration in January walked back plans to begin collections on their loans. A Moody’s Analytics report this spring said garnishments are likely to begin within the next year, warning of “an additional headwind in an increasingly fragile economy.” 

Governments and colleges may also impose additional penalties on borrowers in default, including restricting access to further financial aid, withholding transcripts and suspending professional licenses and driver’s licenses. 

“These measures are not only punitive, they’re also self-defeating: by undermining someone’s ability to cover basic expenses, return to school to finish a degree, keep their job, or even drive a car, the default system makes it harder for someone who is already struggling to secure their financial footing,” Zampini wrote in 2025. 

For-profit colleges, lower repayment rates

Students who attend Wisconsin’s for-profit colleges are far less likely to satisfy their loan payments than their peers at the state’s public and nonprofit private colleges, the AP data shows. 

AP reporters analyzed data from the Office of Federal Student Aid on students whose loan payments first came due between January 2020 and May 2025, typically because they either graduated or left school. The analysis does not include students at schools with fewer than 100 borrowers. 

The data shows students who have attended for-profit schools in Wisconsin are twice as likely as their peers to be at least 90 days behind on payments. At Wisconsin’s public and private colleges, one in seven of these borrowers had fallen behind on payments by May of this year. At for-profit schools, the rate was more than one in four. 

Nonpayment rates were highest for students who attended for-profit cosmetology schools.

Nearly half of the 300 borrowers in the sample who attended Tricoci University of Beauty Culture’s Janesville campus were at least 90 days late. 

The Paul Mitchell beauty schools in Madison — which has since closed — and Milwaukee have 40% nonpayment rates. The nonpayment rate for the Salon Professional Academy in Kenosha is 36%, and the rate at State College of Beauty Culture is 35%.

Elinor Mittlestat, owner of State College of Beauty Culture, found the nonpayment rate surprising. She noted that many people graduate from the school without any loans. 

“It has been a strained economy, and I do understand that newly graduated students sometimes struggle to make student loan payments,” she said. 

One reason for the low repayment rate could be that cosmetology graduates tend to have relatively low incomes. On average, graduates of the Paul Mitchell school in Milwaukee, the Salon Professional Academy in Kenosha and State College of Beauty Culture make $7,000 to $12,500 less than the median Wisconsin high school graduate, according to an analysis of earnings data from Open Campus and The HEA Group.

Meanwhile, student borrowers who don’t finish school have to make loan payments too, even though they don’t have a credential to help them get a better job. Those who don’t graduate are more than twice as likely to end up in default, according to research by the Pew Charitable Trusts.

“The most important thing that you can do to be able to repay any loans you take out is to finish your program,” Carole Trone, executive director of the Wisconsin Coalition on Student Debt, told Wisconsin Watch in January. People leave school for all sorts of reasons, including family commitments and job changes. “A lot of that can be really unavoidable … but those are the borrowers that often have the most difficulty in repaying their loans.”

Around 25,000 students who recently attended Wisconsin public colleges are at least 90 days behind on their payments too, though they represent a far smaller share (13%) of those borrowers.

Students who attended Gateway Technical College have the highest nonpayment rate of the state’s public schools, with three in 10 recent students not making payments. 

Gateway communications manager Lee Colony said the college needs to use a “personal touch” to see what’s driving people to not pay their loans.

“We will reach out to those students and see if there is any help we can provide to them for repayment options,” Colony said. “Some of that outreach will also include ways to educate them on finances and how to properly borrow money to pay for college.”

By comparison, the University of Wisconsin campuses in Oshkosh, Stevens Point, Superior and Whitewater all have nonpayment rates of 10%, while UW-Madison’s rate is just 3%. At all of those schools, most students receive some form of financial aid besides loans.

Nationwide, AP’s analysis found 133 schools where more than half of recent students are at least 90 days behind on payments. Nearly all of them are for-profit schools, and more than half of them are barber or beauty schools.

This story was reported in collaboration with The Associated Press through its Localize It initiative, which provides datasets, reporting and story ideas for local newsrooms.

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Find her on Instagram and Twitter, or send her an email at mdunlap@wisconsinwatch.org.

Natalie Yahr reports on pathways to success statewide for Wisconsin Watch, working in partnership with Open Campus. Email her at nyahr@wisconsinwatch.org. 

Student loan defaults surge in Wisconsin, US after federal reprieve ends is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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• Students from the age of 11 to 18 can enroll at career-focused summer camps at Lakeshore College. 
• The June camps focused on culinary arts, manufacturing and information technology careers. 
• The camps introduce students to high-demand careers when they’re young, which leaders hope will spark their interest and help fill worker shortages.

In mid-June, roughly a dozen young teens wearing white chef coats lined up at stations inside a classroom resembling a real industrial kitchen. 

They gingerly cut slices of avocado, cucumber and mamenori — soy paper — before finally using a bamboo sheet to roll the ingredients into a log of sushi. 

Their instructions, delivered by a Lakeshore College instructor, looked much like lessons given in a real college class. But the students weren’t getting graded — they were attending the college’s summer camp, designed to introduce them at a young age to high-demand jobs in the region. 

Across the Cleveland, Wisconsin, campus that week, students between the ages of 11 and 18 learned the basics of culinary, manufacturing and information technology careers. It’s all part of a growing push by education and workforce leaders to expose students to high-demand careers long before they graduate high school, hoping early exploration will help fill worker shortages. 

In just three days, Haiden Taylor learned to cook hummus, tzatziki, pizza, and, her favorite, doner kebab. It was her second year enrolling in the camp. As she heads into her senior year of high school, she’s now considering culinary as a career.  

“I like working with people. I like working with my hands. I really don’t see myself at a desk job,” Taylor said. 

It all offers kids much more exploration and hands-on learning than Electro and Maintenance Mechanic instructor Kaven Lewis had as a kid. Then, people discouraged skilled trade work, he said. Events like the summer camp feel like proof that this is changing today. 

“It was … ‘Go to college, get an education,’” Lewis said. “Now it’s like, ‘Trade school, that’s where all the money is going to be.’ It’s kind of cool to be in the middle of that transition … It’s cool to see these kids coming in and being more interested in that blue collar, hands-on type of career.” 

Opening students’ eyes

On the other side of campus, a group of children between ages 11 and 13 appeared dwarfed by the cavernous garage they gathered in. 

The children focused intently on assembling a mousetrap-powered car kit, hoping to build the fastest car to win the drag race that took place in the hallway. 

The activity involved trial and error — one student’s car detonated at the starting line — but in the process, they learned how different factors impacted speed, torque and the distance the car traveled.

Down the hall, in the welding and fabrication lab, students learned to shape metal into spatulas. When they were asked how many of them took it as an opportunity to engineer gifts for the upcoming Father’s Day holiday, nearly every student’s hand shot in the air. 

About half of the students who come to camp are already dead set on what they want to do when they grow up, said Ben Reynolds, chef and culinary arts instructor. The other half have no clue. 

“It’s really fun to see the ones that aren’t sure, and then by day three they’re like, ‘yup!’” Reynolds said. 

That was the case for student Claude Judd, a 10th grader who signed up for culinary camp just for fun. 

The lessons “definitely opened my eyes a little bit,” she said, and she’d now consider a career in culinary arts. 

Workers needed

Initially supported by grants and now funded by the college, the summer camps have been put on by Lakeshore for years. The subjects and careers students explore vary annually based on feedback from college faculty and the campers themselves. 

The careers highlighted this summer — including manufacturing, culinary arts and information technology — are among those employers in northeast Wisconsin have struggled to fill.

For example, restaurant cook gigs are one of the fastest-growing in northeast Wisconsin, projected to add 740 jobs between 2022 and 2032, state data shows. 

Cooks and food preparation workers in the northeast region made an average salary of $34,550 in 2025. Data shows such academic programs have mixed results in actually setting participants up to make more money. According to an analysis of earnings data from Open Campus and The HEA Group, not all culinary programs in the state lead students to higher earnings than the average high school graduate. 

In contrast, welding and metal working jobs are expected to grow by about 10% during the same period, adding 430 jobs. Technical college job training programs for these careers usually set students up to make at least $15,000 more than the average high school graduate, and sometimes up to nearly $30,000 more. 

Even if students don’t leave camp committed to a particular career path, college leaders say they’re gaining confidence and communication skills. 

“At this point in their collegiate journey they’re getting that question of, ‘What do you want to do?’” Reynolds said.

The philosophy that drives the summer camp program is similar to what Reynolds tells his teenage son.

“I don’t expect you to know what you want to do your whole life. I just expect you to go experience things and try things and find out what makes you want to get out of bed.”

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Email her at mdunlap@wisconsinwatch.org.

Lakeshore College summer camp introduces children and teens to hands-on, in-demand jobs is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.