Credit & Debt®, an IDIQ® financial wellness platform dedicated to empowering people to make smarter financial decisions, recently conducted a survey to understand the challenges faced by student loan borrowers. The findings paint a clear picture of the worries surrounding student loans and highlight the need for effective solutions. Let’s dive into the key insights.
The Concerns of Student Loan Borrowers
The survey involved respondents with various types of student loans, including federal loans (65%), private loans (14%), and a combination of both (nearly 10%). These loans were a source of significant concern, with many borrowers struggling to manage their monthly payments. According to the College Board, the average student loan debt for a bachelor’s degree is $29,400, and the Federal Reserve reports that the average monthly payment ranges between $200 and $299.
The survey data underscores these financial burdens. A staggering 94% of respondents expressed worry about their ability to repay their loans, and a significant majority, 65%, found their monthly payments unaffordable.
Committed to Repayment, Seeking Better Solutions
Despite the challenges, the survey reveals that borrowers are strongly committed to repaying their loans but urgently need better solutions. Approximately 92% of respondents identified paying off their student loans as a top priority, and 67% expressed a desire for more effective solutions, such as refinancing or consolidating their student loan debt. Refinancing involves securing a new loan with potentially lower interest rates, while debt consolidation combines multiple loans into one, simplifying repayment and potentially reducing the monthly payment.
Credit & Debt offers valuable resources to assist student loan borrowers. The platform connects users with student loan refinance partners and offers free financial coaching to help borrowers develop a personalized strategy for managing their debt and achieving financial freedom. The Credit & Debt Money Sensei® technology also streamlines money management, giving borrowers control over their financial future. You can build a realistic budget, track your credit scores, and more through the Credit & Debt app.
Bottom Line
The survey conducted by Credit & Debt highlights the significant challenges faced by student loan borrowers due to overwhelming debt burdens.
In the face of overwhelming student debt, Credit & Debt offers a solution. You can get started for free to meet with a financial coach and access a suite of budgeting and financial wellness tools to help you escape debt and achieve financial freedom.
