RSSSixty-one percent of borrowers impacted by the federal government pause on student loan payments during the pandemic made positive changes in their lives, according to a Nov. 13 report from the Consumer Financial Protection Bureau.
The CFPB’s first student loan borrower survey was conducted between October 2023 and January 2024, gathering data from a representative sample of student loan borrowers in the months after the pause ended. The survey included borrowers’ experience with loan servicers, federal programs, loan forgiveness, discharges and repayment. The data is intended to inform policy decisions and spot areas where borrowers could need additional support.
Thirty percent reported going without food, medicine or other necessities because of student loan payments. Nearly 40 percent carried credit card debt they otherwise would not have. Forty-four percent delayed buying a home, and 26 percent put off starting a family.
Sixty-three percent had difficulty making their student loan payments, and 37 percent had missed at least one payment, according to the report. Significantly higher rates were reported for Black and Hispanic borrowers, those with less than a four-year degree and Pell Grant recipients, according to the report.
“The COVID-19 payment pause provided meaningful relief, but many borrowers reported they had little confidence that they could afford their student loan payments when the federal student loan payment pause ended,” according to the CFPB.
Debt relief mainly reached borrowers with below-median income, according to the report. In 2022, median household income for student loan borrowers who received debt relief was between $50,000 and $65,000, under the national median of nearly $75,000. Ten percent of borrowers received $5,000 or less. Another 10 percent received at least $99,000. The median borrower received $20,000.
Forty-two percent of federal student loan borrowers have only used the standard repayment plan, with many unaware of other options to lower their payments, according to the CFPB. Nearly 45 percent of borrowers enrolling in an income-driven repayment option experienced challenges either signing up or using the plan, according to the bureau.
“Our survey reveals that student loan debt relief has been a lifeline for many borrowers, allowing them to make positive changes in their lives,” said CFPB Director Rohit Chopra. “However, it’s clear that many borrowers are struggling with repayment, and there is more work to be done to ensure repayment options are accessible and effective.”
