70% of Private Student Loan Borrowers Successful in Asking for Lender Relief
Report finds that male borrowers (65%) were significantly more likely to seek help than female borrowers (42%)
CHARLOTTE, N.C., June 18, 2020 /PRNewswire/ -- With the recent passing of the CARES Act, private student loan borrowers found themselves with very few relief options. The law granted millions of federal student loan borrowers a 0% interest, six-month reprieve from repayment, but failed to address those with private student loans, leaving millions uncovered.
In fact 8 in 10 private loan borrowers said they felt like they've been left out to dry by the federal pandemic-relief packages, according to a new survey of 1,000-plus borrowers from student debt resource platform Student Loan Hero.
Fortunately, however, findings indicate that about 70% of private loan-holders who have requested relief directly from their lenders have received it.
Nearly 3 of every 10 respondents with private education debt have "strongly considered" filing for bankruptcy over the last three months as a means to loan discharge amid the pandemic.
"Some state governments are offering student debt help, with various governors reaching agreements with lenders in their states to give borrowers a reprieve that won't damage their credit reports," said Andrew Pentis, certified student loan counselor and personal finance expert. "Try contacting your state's higher education authority (via the Department of Education's contact map) for information about support programs."
Additional Key Findings
- Approximately 54% of private loan borrowers requested a reprieve from their lender due to COVID-19. Male borrowers (65%) were significantly more likely to seek help than female borrowers (42%).
- Almost 70% of borrowers were successful when asking private lenders for a break on their monthly payments. Unfortunately, many borrowers who didn't call for assistance either didn't know that was an option or believed their lending institution wouldn't be helpful.
- 24% of respondents considered a bankruptcy proceeding, but only as a fleeting thought.
- About 51% of private student loan borrowers have seen their wages or hours cut, or they were laid off or furloughed due to the coronavirus's effect on the economy.
- About 8 in 10 of these private loan borrowers believe it's unfair that their debt was excluded from federal government-granted relief.
To view the full report, visit: https://studentloanhero.com/featured/survey-private-student-loan-relief
Methodology
Student Loan Hero commissioned Qualtrics to conduct an online survey of 1,042 student loan borrowers, including 526 borrowers who have private student loans. The survey was fielded from May 26-29, 2020.
About Student Loan Hero
Student Loan Hero, a subsidiary of LendingTree, combines easy-to-use tools with financial education to help the millions of Americans living with student loan debt manage and pay off their loans. The website provides information about repayment options, including refinancing, income-driven repayment, and deferment. Student Loan Hero has helped more than 250,000 borrowers manage and eliminate over $3.5 billion in student loan debt since 2012 and assists over 3.5 million people in becoming more financially healthy every year.
Founded in 2012 by CEO Andrew Josuweit, who himself had over $100,000 in student loans, Student Loan Hero operates on the belief that all loan help and recommendations should come with honesty and no hidden agenda.
For more information, visit https://studentloanhero.com.
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SOURCE Student Loan Hero
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