2024-01-17 02:42:05
After a nearly three-year hiatus due to COVID-19, nearly 60% of Americans who have defaulted on their student loans are reported to have missed their monthly payments, some with the intention of seeing the government cancel their debt.
Thus, since October, 25% of student loan borrowers have not made any payments. In addition, 9% of them admitted to boycotting the repayment of their debt in order for the government to cancel it, according to a recent survey by “intelligence.com”.
“While the frustration behind the student loan boycott is understandable, it is unlikely to lead to positive change,” said Jake Hill, founder and CEO of DebtHammer, adding that it is more likely to have an impact. negative on their credit score.
No means to repay
Among those who have not made any payments since October, 69% said they could not afford them. In fact, the vast majority (63%) have an annual salary of less than $45,000. The latter would benefit from the fact that the Biden administration would not impose a penalty on them until September 2024.
“Borrowers struggling with student loan repayments should consider income-driven plans, loan forgiveness programs, and loan consolidations as possible strategies for managing their debts,” noted Eric Eng, founder and CEO of AdmissionsSight.
The survey was conducted in January among $1,000 federal student loan borrowers.
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