Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
- 69% of student loan borrowers surveyed have resumed their loan payments
- Only about half of borrowers feel like they can afford their new monthly payment
- Most borrowers had no problems with their loans when payments resumed
Only 69% of student loan borrowers have resumed payments on their student loans, according to a new survey from College Investor. This is slightly higher than the Education Department's initial announcement, which said 60% of borrowers had resumed payments.
The student loan payment pause due to Covid-19 officially ended on August 31, 2023. Interest resumed on September 1, and for most borrowers, their first student loan payment would have been due in October 2023. However, the student loan repayment schedule begins again has been skewed for some borrowers as student loan servicers have struggled to keep up with the workload – resumption of repayments, lending changes and more.
In particular, errors by student loan servicers resulted in millions of borrowers being put on hold until payments could be established and repayment plan changes could be processed. This included enrolling borrowers in the new SAVE student loan repayment plan.
Only two-thirds of borrowers have resumed payments
According to the survey results, 69% of borrowers have resumed their student loan payments. In December 2023, the Department of Education announced that 60% of borrowers reported that they had resumed payments.
It appears that more borrowers have started paying off their student loans.
There are several reasons why borrowers report that they have not yet made student loan payments. While some consciously choose not to make payments and take advantage of the 12-month on-ramp period, most are in administrative forbearance due to loan processing issues or did not know they had to do so already.
A slim majority feel like they can afford to pay their student loans
When it comes to making their student loan repayments, only 53% of borrowers felt they could afford their monthly payment. In our survey before payments resumed, only 45% of borrowers felt financially ready to make their student loan repayments.
The most common reason borrowers say they can't afford their student loans is because they are unemployed or underemployed.
Inflation, which made other areas of their budget more expensive, was also a common problem.
Most borrowers follow their original repayment plan
Given concerns about their ability to pay their student loans, we asked whether borrowers would change their repayment plan to the new SAVE plan touted by the Biden administration. This would help improve the affordability of their loan payments – some payments would be legally reduced to $0 per month for low-income individuals and families.
In January 2024, the Department of Education announced that 6.9 million borrowers were enrolled in the SAVE plan. That’s about 16% of federal student loan borrowers.
Our survey found that only 12% of borrowers had switched to the SAVE plan, while 60% had the same repayment plan as before the pandemic. The remaining amount did not know exactly what payment plan they would use to repay their loans.
This will help you get on the right track when it comes to paying off your student loans
In September 2024, the 12-month ramp-up period for student loan borrowers to resume payments ends. Borrowers who have not yet started making student loan payments need to take some time to find the best repayment plan for their loans.
Borrowers can view options using the loan simulator on StudentAid.gov. Borrowers who don't know where their loans are can log into StudentAid.gov or check their credit report.
Here is a guide to tracking down your student loans.
methodology
College Investor hired Pollfish to conduct the survey. All figures come from Pollfish unless otherwise stated. The total sample size was 600 adults (18 years of age or older), all of whom currently have student loan debt that they are responsible for. The fieldwork was conducted on February 9, 2024. The survey was conducted online and meets strict quality standards.
Don't miss these other stories:
Average Student Loan Debt by State in 2024. Student Loan Servicer Mistakes Leave Borrowers Unsure. What is the SAVE repayment plan?
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
