About 70% of student-loan borrowers who were making regular payments before the pandemic expect they’ll manage to make their payments in full after the pause ends. Among this group, 20% reported that “their scheduled payments were currently unaffordable.'
About 70% of student-loan borrowers who were making regular payments before the COVID-19 pandemic now expect they’ll manage to make their payments in full after the end of an ongoing pause for repayments.
“Beyond this group of borrowers, however, continued blanket forbearance extensions are costly and benefit the majority of borrowers who neither expect to struggle with their payments when the payment pause ends nor appear to be shoring up their savings or paying off other debts.” “In other words, for some borrowers, additional forbearance extensions are simply postponing a day of reckoning with loan payments that are unaffordable. Our data show that a more effective and equitable solution would be to design and implement a thoughtful set of policies that address the different root causes of those payment challenges,” they said.
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