A recent survey by the Consumer Financial Protection Bureau (CFPB) reveals just how tough things are for many people with federal student loans. About 30% of borrowers say they’ve had to skip food, medicine, or other basic needs because of their monthly loan payments. In addition, 38% of borrowers reported taking on credit card debt they wouldn’t have if it weren’t for their student loans.
The survey, which gathered over 3,000 responses from people with active or recently active student loans, also found that 44% of borrowers said their student debt made it harder to buy a home, and 26% said it delayed when they could start a family.
The survey was conducted between October 2023 and January 2024, shortly after federal student loan payments resumed in September, following a pause during the COVID-19 pandemic.
Rohit Chopra, the Director of the CFPB, stated, “It’s clear that many borrowers are struggling with repayment.” This struggle is no surprise considering that total student loan debt in the U.S. is over $1.6 trillion, with 43 million people carrying student loans.
The report also touches on the efforts made during President Biden’s time in office to provide relief to borrowers. More than 5 million people had their loans forgiven, totaling over $175 billion. Many borrowers who received loan forgiveness reported positive changes in their lives, such as saving money, changing jobs, or even seeking medical treatment they couldn’t afford before.
However, not everyone is on board with these efforts. Some, like President-elect Donald Trump, have criticized student loan forgiveness, calling it unfair. Republicans argue that it’s a giveaway to people who are already financially stable, even though the typical income of those who received forgiveness was between $50,000 and $65,000—lower than the national median of $80,000.
The main takeaway? For many, student loan debt is more than just a financial burden; it’s affecting their basic needs, life plans, and ability to get ahead.
