Only 42% of Student Loan Borrowers Think Biden Administration Will Positively Impact Their Debt, Down From 69%
Student Loan Hero survey finds 26% of borrowers still believe it's at least somewhat likely that the Education Department will cancel their balance before Biden's term ends.
CHARLOTTE, N.C., April 12, 2022 /PRNewswire/ -- Fresh off the heels of last week's announcement of an extension of the pause on student loan repayment through August, Student Loan Hero, a LendingTree company, released the findings of its latest survey.
To measure how optimistic student loan borrowers are about their overall debt portfolios and mass student loan forgiveness before the end of President Biden's current term, the online student debt education platform polled more than 1,000 student loan borrowers.
The survey findings indicate that while borrowers' confidence in student loan relief is lessening, more than a quarter of borrowers think it's still somewhat likely all their debt will be forgiven within the next two years.
Key Findings
- Student loan borrowers have plummeting expectations that the Biden administration will positively impact their student loan debt. Currently, 42% of borrowers expect a positive impact, down from 69% in December 2020 and 60% in July 2021.
- 54% of borrowers say they're managing their student loan debt with forgiveness in mind. For example, 27% are holding off on refinancing if that would limit or erase their forgiveness eligibility. Meanwhile, 14% didn't make payments during the moratorium despite being financially able.
- More than a quarter (26%) of borrowers with federal student loans think it's at least somewhat likely all their debt will be forgiven during Biden's current four-year term. That's down from 39% of all borrowers in December 2020.
- 44% of borrowers say federal student loan forgiveness would "completely" improve their financial situation. This percentage climbs even higher among borrowers with doctorates or master's degrees (60%).
- 55% of borrowers want to see even more changes to the Public Service Loan Forgiveness (PSLF) program, arguing the Biden administration's recent improvements don't go far enough. That said, 33% of borrowers are satisfied with the increased accessibility and don't think further adjustments are needed.
"Despite the helpful student loan freeze on interest and payments that the Biden administration has extended four times, some borrowers have lost hope for further relief. Just 42% now expect additional positive impact arriving from the White House." according to Student Loan Hero certified student loan counselor and student debt expert Andrew Pentis. He adds, "Interestingly, borrowers with a doctorate or a master's degree report having the highest expectations of student loan relief via the Biden administration (57%). That's compared with 43% of bachelor's degree-holders and 34% of associate degree-earners."
To view the full findings, visit: https://studentloanhero.com/featured/mass-student-loan-forgiveness-survey/
Methodology
Student Loan Hero commissioned Qualtrics to conduct an online survey of 1,048 student loan borrowers ages 18-55 from March 2-11, 2022. The survey was administered using a non-probability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.
We defined generations as the following ages in 2022:
- Generation Z: 18 to 25
- Younger millennials: 26 to 35
- Older millennials: 36 to 41
- Generation X: 42 to 55
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.
For more information, visit https://studentloanhero.com.
MEDIA CONTACT
Frankie Rendón
[email protected]
SOURCE Student Loan Hero
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article