RN Students Accumulate More Than R$ 1.2 Billion in Outstanding Fies Debt

In Rio Grande do Norte, student debt tied to Brazil’s Fies program has reached a critical level, with about 31,600 contracts signed up to 2017 now in default and a total outstanding balance exceeding R$1.26 billion, according to data from the Ministry of Education. The average debt per borrower in the state is around R$40,000, and the burden is concentrated among young adults: more than 72% of those in debt are up to 30 years old, while 62% of the contracts belong to women.

The report highlights how Fies, created to expand access to private higher education, has also become a long-term financial burden for many graduates. The mismatch between monthly installments and early-career wages is one of the main reasons for delinquency, especially in a labor market that often fails to absorb new professionals quickly enough. On average, the financing can take about 15 years to be fully repaid.

Economists interviewed in the article say the problem extends beyond individual borrowers. They argue that unpaid installments reduce the circulation of money in the local economy, limit access to credit, and force families to adjust consumption. When borrowers begin repaying or renegotiating their loans, part of their income is redirected from spending to debt service, affecting day-to-day purchases and financial planning.

The human impact is illustrated by personal stories. Nutritionist Jéssica Nascimento, 28, used Fies to complete her degree but struggled to find work in her field, accumulating a debt that exceeded R$49,000 before negotiating it down and paying about R$15,000. She says clearing the debt allowed her to access credit and finance a home. Nurse Amanda Carolinne, 33, says she is still paying about R$24,000 and feels the loan remains a heavy monthly burden, even though it helped her study.

Another case is that of Moab Ferreira, 32, who stopped attending college in 2014 but kept the Fies contract active. His debt rose to about R$27,000, and he is now seeking a renegotiation under the federal Desenrola Fies program. The initiative, which offers discounts and installment options through Banco do Brasil and Caixa Econômica Federal, has already renegotiated more than 25,000 contracts nationwide, totaling around R$1.4 billion.

Experts say Desenrola Fies may help borrowers leave default, recover access to credit, and reorganize their finances. Still, they warn that renegotiation must be handled carefully to avoid new cycles of debt.