72% of Federal Student Loan Borrowers Not Financially Ready to Resume Payments |
Raised loan hero report finds that figure jumps to 86% among borrowers whose incomes have been hit by the coronavirus pandemic
CHARLOTTE, North Carolina, March 31, 2022 /PRNewswire/ — As the Biden administration debates whether to extend the current moratorium on federal student loan repayments beyond 1st May, Raised loan heroa LendingTree company, sought to gauge the feelings of US debtors about a possible resumption of loan repayments.
The online student debt education platform today announced the results of its latest survey of more than 1,050 student borrowers and found that 72% of federal borrowers say they are not financially ready. resume their monthly payments.
- 72% of federal borrowers say they are not financially ready to start submitting monthly payments again. This rises to 86% among borrowers whose income has been affected by the coronavirus pandemic and has not returned to normal.
- More than half of borrowers who have defaulted on their federal loans spend their monthly savings on necessary expenses, such as housing costs or groceries (52%). Others used the money to pay off other debts (30%) and get back on their feet financially (28%).
- 78% of borrowers with federal or private student loans who are not eligible for the moratorium have struggled to make their monthly payments throughout the pandemic. And crushing student debt is not a new trend: 39% of all borrowers had significant difficulty repaying their student loans even before the pandemic.
- One possible solution: 73% of those who refinanced their student debt say it made their payments more manageable. However, only 12% of borrowers refinanced.
“The White House is undoubtedly assessing a potential increase in defaults in connection with its decision to extend the moratorium again or offer student loan forgiveness,” according to Raised loan hero certified student loan counselor and education finance expert Andre Pentis. He adds: “Many borrowers were confident that the Department of Education led by President Biden would provide meaningful student loan support, according to our January 2021 investigation.”
To see the full results, visit: https://studentloanhero.com/featured/resuming-payments-survey/
Raised loan hero commissioned Qualtrics to conduct an online survey of 1,050 student borrowers aged 18-55 March 2-11, 2022. The survey was administered using a non-probability sample and quotas were used to ensure that the base sample represented the overall population. All responses have been reviewed by researchers for quality control.
We have defined generations as the following ages in 2022:
- Generation Z: 18 to 25 years old
- Young millennial: 26 to 35
- Older Millennials: 36 to 41
- Generation X: 42 to 55
About Student Loan Hero
Raised loan hero, a subsidiary of LendingTree, combines easy-to-use tools with financial education to help the millions of Americans in student loan debt manage and repay their loans. The website provides information on repayment options, including refinancing, income-contingent repayment, and deferment. Raised loan hero helped over 250,000 borrowers manage and eliminate over $3.5 billion student debt since 2012 and helps more than 3.5 million people improve their financial health every year.
Founded in 2012 by CEO Andrew Joshuawho had himself $100,000 in student loans, Student Loan Hero believes that all loan help and referrals should be honest and without hidden agendas.
For more information, visit https://studentloanhero.com.
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SOURCE Student Loan Hero