A new survey from the Pew Charitable Trusts shows that more than half of student loan borrowers consider themselves financially insecure, with an overwhelming majority (74 percent) of borrowers saying they had experienced at least one negative financial event in the last 12 months—such as not being able to pay the full amount due on their mortgages or rents on time, overdrawing their checking accounts, or applying for public assistance programs.
Many borrowers in the study also report experiencing some degree of volatility in their incomes (56 percent) and expenses (75 percent), two factors that have been associated with repayment difficulties, including higher rates of default.
The survey results show that as borrowers incorporate loan payments back into their budgets, they are juggling a host of financial challenges while navigating an uncertain student loan repayment landscape. As the U.S. Department of Education continues to implement changes to Income Driven Repayment plans in a time of uncertainty, it needs to provide borrowers with concrete steps to keep their loans in good standing, the study notes.