• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

This Former NFL Player Built a Brand Around Nasal Breathing

July 10, 2025

What My First Failed Startup Taught Me — and How I Finally Got It Right 20 Years Later

July 10, 2025

The Best Domains Are Gone — Here’s How Savvy Founders Still Snag Them

July 10, 2025
Facebook Twitter Instagram
Trending
  • This Former NFL Player Built a Brand Around Nasal Breathing
  • What My First Failed Startup Taught Me — and How I Finally Got It Right 20 Years Later
  • The Best Domains Are Gone — Here’s How Savvy Founders Still Snag Them
  • Why Your Old Marketing Tactics Are Killing Your Growth in 2025
  • Mortgage rates tick higher for first time in weeks
  • Social Security & The Big Beautiful Bill
  • Millionaires Are Fleeing These 10 Countries (the First Is Now in Europe)
  • These 5 ‘Free Trials’ Are Draining Your Bank Without Warning
Friday, July 11
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » Student loan borrowers not ready to resume payments, unaware of options: survey
Loans

Student loan borrowers not ready to resume payments, unaware of options: survey

News RoomBy News RoomAugust 6, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

A growing number of Americans with federal student debt feel financially unprepared to restart loan payments when they resume later this year, a recent survey said.  

Student loan payments are set to pick up again in October after a 42-month payment and interest rate pause, according to the Department of Education. Student loan interest will begin accumulating on September 1, 2023.

More than half (55%) of student loan borrowers said they don’t feel financially ready to resume payments in 2023, according to the College Investor survey. That marks a big jump from last year when only 29% of borrowers said they didn’t feel financially ready.

The results come even as 46% of student loan borrowers said their income rose. For 53% of borrowers, rising inflation and costs meant their monthly expenses have also increased since March 2020. Most respondents (57%) said they used their savings from not making student loan payments to cover essentials like food and housing costs. 

Additionally, 58% of borrowers don’t know their loan payment amount, according to the survey. 

“This highlights a big lack of communication between borrowers and the Department of Education and the various student loan servicers,” College Investor Founder Robert Farrington said. “It also is adding to student loan borrower anxiety.”

If you have private student loans, these do not fall under the current student loan payment pause, but you can find relief by refinancing to lower your monthly payments. Visit Credible to find your personalized interest rate without affecting your credit score. 

SUBPRIME-RATED CONSUMERS HAVE LESS ACCESS TO CREDIT – HERE’S HOW TO IMPROVE YOUR SCORE

Biden gives struggling borrowers some help

Shortly after the Supreme Court blocked President Joe Biden’s student loan forgiveness plan, Biden announced a new avenue for outright forgiveness modeled on the Higher Education Act (HEA). HEA includes a provision that allows the Secretary of Education to compromise, waive or release federal student loans. 

But using the HEA to cancel student debt could be a much more lengthy process than the president’s previous attempt to use the HEROES Act. But it could eliminate about $441 billion in outstanding student debt. 

At the same time, the President announced plans for a 12-month “on-ramp” repayment program running from Oct. 1 to Sep. 30, 2024. Monthly payments and interest will accrue during this time, but borrowers that can’t pay can use the on-ramp to avoid hurting their credit.

Moreover, Biden encouraged borrowers to look at the several initiatives his administration has worked on as possible avenues toward forgiveness. Among the options available is the Public Service Loan Forgiveness (PSLF) program, which can eliminate student loan debt for eligible government or nonprofit employees. 

The Department of Education also announced details of its income-driven repayment initiative, the Saving on a Valuable Education (SAVE) plan. The plans could reduce borrowers’ monthly payments to zero dollars, cut monthly payments in half or save those that do make payments at least $1,000 a year, the White House said in a statement.

However, 41% of borrowers didn’t know if they qualified for any student loan forgiveness program, and 35% were unaware of the different repayment plan options for their student loans, the survey said.

“Of course, borrowers won’t feel financially ready when they don’t know what to expect and what their options are,” Farrington said. “It’s likely a big driver as to why 82% of student loan borrowers are worried about their loan payments.”

If you are interested in paying down your private student loan debt, a refinance could help you lower your interest rate and monthly payment. To see if this is the right option for you, contact Credible to speak to a student loan expert and get your questions answered.

GROWING NUMBER OF PARENTS SAY THEY AREN’T PREPARED TO PAY FOR COLLEGE: SURVEY

Here’s how you should get ready to resume payments

Borrowers should prioritize investigating the several repayment plans and expanded student loan forgiveness programs offered by the Department of Education. 

Beyond PSLF, borrowers should see if they can access Pell Grants or qualify for teacher loan forgiveness or firefighter loan forgiveness programs. Several states are expanding or have already expanded their student debt repayment programs to forgive loans in some instances.

Borrowers should also explore the several repayment plans the Education Department offers. The SAVE plan introduces some significant changes that can be advantageous for many struggling to make repayments, according to student loan expert Mark Kantrowitz.

“Although these changes might not sound as dramatic as all-out forgiveness, they are more narrowly targeted and could still have a significant impact on borrowers’ finances,” Kantrowitz told Barron’s in a recent article.

Borrowers with private student loans could still find relief by refinancing to lower their monthly payments. Visit Credible to find your personalized interest rate without affecting your credit score. 

MORTGAGE RATES INCH TO THE HIGHEST LEVEL SO FAR THIS YEAR: FREDDIE MAC

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Trump admin resuming interest charges for nearly 8M student loan borrowers after Biden’s limbo

Loans July 9, 2025

Student loan delinquencies tank credit scores for millions of borrowers: How to recover

Loans May 19, 2025

Student loan delinquencies surge, sending credit scores plunging for borrowers

Loans May 15, 2025

Student loan borrowers in default begin facing debt collections

Loans May 5, 2025

Here’s why the average US credit score is falling

Loans April 18, 2025

Married Americans with student loans with income-driven plans may get a break: report

Loans April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

What My First Failed Startup Taught Me — and How I Finally Got It Right 20 Years Later

July 10, 20250 Views

The Best Domains Are Gone — Here’s How Savvy Founders Still Snag Them

July 10, 20250 Views

Why Your Old Marketing Tactics Are Killing Your Growth in 2025

July 10, 20250 Views

Mortgage rates tick higher for first time in weeks

July 10, 20250 Views
Don't Miss

Social Security & The Big Beautiful Bill

By News RoomJuly 10, 2025

So, what affect did the Big Beautiful Bill signed on July 4, 2025, by President…

Millionaires Are Fleeing These 10 Countries (the First Is Now in Europe)

July 10, 2025

These 5 ‘Free Trials’ Are Draining Your Bank Without Warning

July 10, 2025

Goldman Sachs Asking Junior Bankers to Confirm Loyalty

July 9, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.