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U.S. – When the student loan pause ends, almost half of borrowers expect to miss payments

5 septembrie 2023

More than 2 in 5 (44%) federal student loan borrowers do not think the return on investment for higher education in America is worth the expense. 

After a moratorium of more than three years, federal student loan payments resume in October. A new survey from Kredit Karma suggests many borrowers aren’t ready. Some 45% of respondents said they expect to fall behind on their payments once the forbearance ends.

More than 2 in 5 (45%) of federal student loan borrowers expect to go delinquent on their student loan payments once forbearance ends. 

Even though they have not been making student loan payments, 53% of federal student loan borrowers say they are struggling to pay other bills (e.g. auto loan, mortgage, credit cards).

Not only do federal student loan borrowers have to grapple with how they’re going to afford to resume payments come October, but three quarters of them (75%) are also on the hook for providing financial support to their families, whether that be paying for their food, clothes, rent or other bills.

October will also mark the first time that more than a third (36%) of borrowers have ever had to make payments toward their federal student loans. Federal student loan borrowers with an annual household income (HHI) of less than $50K are almost twice as likely as those with an HHI of $100K+ to say they have not yet made any payments on their federal student loans (48% vs. 25%).

More than half of federal student loan borrowers (56%), including 57% of those who provide financial support to family, say they will need to choose between making their student loan payments or paying for necessities (e.g. rent, bills, groceries), as they cannot afford both. 

In this context, is the return on investment (ROI) for higher education in America worth the expense? For more than 2 in 5 federal student loan borrowers, the answer is no, as 44% say it’s not worth the expense. Even more concerning is the fact that more than half of federal student loan borrowers (58%) say that the thought of resuming payments on their student loans negatively impacts their mental health. 

“Federal student loan borrowers will face a new normal as payments are set to resume after a 3+ year hiatus,” said Courtney Alev, consumer financial advocate at Credit Karma. “While many borrowers were able to get ahead in other areas of their finances during forbearance, others struggled to stay on top of other bills and expenses, likely a result of inflation and today’s high cost of living. We recommend borrowers review their cash flow over the last few months to see if they have money left over to put toward their payments. If that’s not the case, they should look for areas they might be able to cut back on their spending. They can also visit studentaid.gov to learn how they can potentially lower their monthly payments by applying for an income-driven repayment (IDR) plan and/or the Department of Education’s newest SAVE plan.” 

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:


In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?