Americans in federal student debt recently got another reprieve when President Joe Biden extended the moratorium on student loan payments until August 31 to help borrowers “breathe a little easier.” Even with the extra time, however, the majority of those with student debt still don’t think they’ll be able to pay the loans when payments resume on September 1, according to a new survey from GOBankingRates.
See: Biden extends student loan payment suspension until end of August
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The poll of 503 Americans aged 18 and older, conducted in early April, found that 59.5% of respondents answered “no” when asked if they would be able to pay their student loans on March 1. September 2022. Only 28.93% responded. “yes,” while just under 12% said they could pay “some, but not all” of their student debt.
Younger respondents expressed the most confidence in their ability to repay their student debt. Almost half (47.37%) of 18-24 year olds said they would be able to afford payments when they resume, while 42.86% of 25-34 year olds said the same.
At the other end of the spectrum, less than 7% of respondents aged 55 to 64 said they would be able to repay their student loans on September 1. About 14% of respondents aged 45 to 54 said they would be able to do this. Of the remaining respondents, 31.82% of those aged 35 to 44 said they would be able to pay their student loans when they resumed, and a fifth of those aged 65 and over said the same.
The vast majority of older respondents – more than 80% of those aged 55 and over – said they could afford to pay off some, but not all, of their student debt when payments resume. Less than half of respondents aged 18-34 said they would be able to repay some but not all of their loans.
Men tend to express slightly more confidence in paying payments than women. Here’s how the results break down by gender:
- Women: 29.34% said they would be able to pay payments when they resume, 66.2% said they would not, and 9.86% said they would be able to pay some but not all payments.
- Men: 36% said they would be able to pay payments when they resume, 50% said they would not, and 14% said they would be able to pay some but not all payments .
See: Income-Based Student Loan Payment Plans Are Defaulting Borrowers – What Should You Do If You Have One?
Find:How to Manage Student Loan Debt as Costs Rise Due to Inflation
If you are unable to repay your loan, you can discuss with the lender changing or deferring payments.
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