POLL: 3 IN 4 STUDENT LOAN HOLDERS HAVE HAD TO MAKE BUDGETARY ADJUSTMENTS SINCE END OF LOAN PAYMENT PAUSE

New Data Highlight Borrowers' Perception vs. Reality on Student Loans Since 2023

DENVER, Oct. 31, 2024 /PRNewswire/ -- One year following the end of the student loan payment pause, the National Endowment for Financial Education® (NEFE®) has collected new data—replicating its 2023 opinion poll on student loan sentiments—to compare borrowers' perceptions of the impact to the actual impact. According to the latest polling, 74% of borrowers with student loan balances say they have had to make budgetary adjustments to make their payments since the end of the pause. This compares to 83% of respondents who anticipated the need to make budgetary adjustments in the 2023 poll. The latest poll also finds that 27% of borrowers say the end of the pause has negatively impacted their lives, compared to 49% of respondents who perceived an impact in 2023.

"In comparing data from the two polls, we better understand the impact borrower planning, new knowledge, interactions with loan providers, policies by the federal government and other changes have had since repayment began says," says Billy Hensley, Ph.D., president and CEO of NEFE. "It also seems that some anticipated outcomes, such as the number of borrowers needing to make budgetary adjustments, may not have been as severe."

Highlights from this latest poll include:

• Of the 74% of borrowers who say they have had to make budgetary adjustments, 28% say they've had to cut up to $500 from their monthly budgets, 21% have had to cut between $500 and $1,000 and 10% have had to cut more than $1,000.

• 73% of respondents say the end of the pause has not had a negative impact on their lives and 75% say it has not had a negative impact on the U.S. economy.

• 64% of respondents across the political spectrum believe the student loan issue should be part of a major political party platform this election season, including 59% of Republicans, 76% of Democrats and 56% of Independents.

• Communications from loan servicing providers since the end of the payment pause have been either "good" or "excellent" according to 50% of respondents.

"Policymakers need to thoughtfully consider their role in addressing the many problems associated with student debt, and individual borrowers need to be fully educated on student lending so they can adjust accordingly to make the best decisions for themselves," says Hensley.

For full methodology and more on this survey, visit the NEFE website. 

SOURCE National Endowment for Financial Education