Student loan borrowers worse off now than in the spring, survey finds

Despite the recent announcement of a short-term extension suspending student loan payments and interest until January 31, 2021, student loan borrowers are worse off now than in the spring, and most are facing long-term challenges, a survey by a student-debt advocacy group has found.

A survey of 58,733 student loan borrowers during the first week of December by the group Student Debt Crisis and Savi, a social impact technology company, found that 77% of borrowers do not feel financially secure enough to resume payments on federal student loans until June 2021 or later.

The survey also found that 65% of borrowers are facing increased anxiety, depression or stress due to the burden of student loan debt during the Covid-19 pandemic, and that 52% of borrowers rate their current financial wellness as poor or very poor since the pandemic began in March. Only 21% rated their financial wellness as poor or very poor prior to the pandemic.

In addition, 35% of healthcare workers with student loan debt have experienced reduced work hours caused by the pandemic. Finally, the survey found borrowers of color are disproportionately likely to report missing a rent or mortgage payment, experience food insecurity and homelessness or be unable to afford healthcare and medicine during the pandemic due to their student loan payments.

The two groups conducted a similar survey in April.