Marylanders are missing payments on student loans, credit cards and other debt

The cost of living in Maryland is hitting a breaking point, and some residents are struggling to pay their mortgage, credit cards, and student and auto loans, according to new data from the Federal Reserve Bank of New York.

The average Maryland resident’s debts are far higher than the national average — likely stemming from higher home prices, more expensive tuition, tariffs pushing up car prices, and greater reliance on credit cards.

And a growing share of that total debt is delinquent, meaning 90 or more days past due.

Economists aren’t alarmed just yet. U.S. delinquencies aren’t approaching the levels seen during the 2008 housing market crash.

It’s more like the nation is getting back to pre-pandemic levels, Joelle Scally, an economic policy adviser at the New York Fed, said on a call with reporters last month.

JP Krahel, a professor of accounting at Loyola University Maryland, said the delinquency trend in Maryland is not all that different from what we’re seeing nationally. Late and missed payments are up in just about every state

Here’s a breakdown of what’s causing Marylanders to fall behind.

Student loans

The Trump administration put a spotlight on delinquent student loan debt late last year when it considered garnishing wages and confiscating tax refunds for borrowers who had defaulted on their loans, meaning they were more than 270 days past due. It would have affected nearly 9 million borrowers.

Maryland’s more than 847,000 student loan borrowers collectively owe about $37.1 billion. The average amount owed is around $43,781, according to the state’s 2025 student loan ombudsman report.

The high balance isn’t surprising, as Maryland is a highly college-educated state.

More than 8% of the total student debt held by Marylanders is delinquent, according to an analysis of data from the New York Fed. It’s a sharp increase from 2024, when less than 1% was 90 or more days past due.

The uptick in debt lines up with the end of the pause on student loans during the COVID-19 pandemic and ongoing complications with income-driven repayment plans, including the Saving on a Valuable Education plan.

It’s unclear exactly how many borrowers are behind on their payments. But The Century Foundation, a progressive think tank, estimates that over a quarter in Maryland were delinquent as of September 2025.

The administration walked back the wage garnishment policy in January to give defaulted borrowers time to get back on track as the U.S. Department of Education works on a plan to reform student loan repayment.

Credit cards

Marylanders are taking on more credit card debt than residents of other states, with an average balance of $9,630 per cardholder, according to a LendingTree analysis. That’s the third-highest in the nation and more than the state’s average of $8,830 in 2024.

Nearly 12% of all credit card debt held by Maryland residents is delinquent.

That is a reflection of higher prices from inflation and tariffs, not necessarily a sign that everyone is struggling to pay their bills, Krahel said.

Auto loans

New car prices hit a record high last September at an average of $50,000, according to Kelley Blue Book. The price surge left auto and student loans neck and neck as the nation’s second-largest consumer debt categories, after mortgages.

Cars became more expensive during the COVID-19 pandemic, when demand outpaced supply, putting pressure on the new and used car markets. Costs have risen ever since, driven by tariffs and the end of electric vehicle tax credits.

Maryland is within the top 15 states for auto loan delinquency, with 6% of all debt for vehicles past due by 90 or more days.

It’s “the one area where we’re in worse shape,” Krahel said, in reference to where Maryland ranks among states in total auto debt and delinquency.

Mortgages

Nationwide, mortgages account for the largest share of consumer debt thanks to ballooning home prices and mortgage rates.

Still, only 1.1% of Maryland’s total mortgage loan debt is delinquent.

The low number reflects a return to pre-pandemic levels, but it’s worth watching. “If you go delinquent on your mortgage, that says something about your overall financial state — it doesn’t bode well,” Krahel said.

Delinquent mortgage debt in Maryland reached its highest point of nearly 8% in 2009.

“Mortgages are performing pretty well by historic standards,” Scally said, referring to nationwide data.

Maryland’s delinquency ranking among states actually improved in 2025, with its rate increasing less than the national average, Krahel said.

Howard, Montgomery and Anne Arundel counties have the highest home prices in the state.