When it comes to managing student loan debt and navigating the constantly changing program rules, regulations, and laws around repayment and forgiveness options, it’s no wonder borrowers are having difficulty grappling with their next steps. In fact, our recent survey of 1,714 U.S. adults found that 70% felt overwhelmed when navigating repayment options, with 76% of respondents experiencing an overload of information, underscoring the significant anxiety and confusion faced by borrowers.
Laurel Road commissioned this new survey to better understand the sentiment around student loan debt amongst borrowers, in partnership with Luminary, a global professional education and networking platform, and conducted by Kantar, which revealed the obstacles borrowers face in managing student loan repayment, including information overload and confidence gaps. These findings underscore the impact of debt on milestone life events as well as the difficulty of navigating an intricate repayment system.
Many student loan borrowers have been met with ambiguity when trying to decipher which repayment option may be best for their financial situation. As a result, 82% of respondents aged 25 to 44 reported feeling “unsure what plans/options are right for me.” While 58% of the 25-44 aged respondents reported feeling moderately overwhelmed, a significantly higher percentage compared to the 45 and older age group, 34.8%.
Low confidence in repayment strategies
Navigating student loan repayment is a complicated process, requiring borrowers to understand available options, conduct thorough research to identify loan management opportunities, and select the most appropriate repayment plan or forgiveness program.
According to the survey, 26% of respondents noted that they did not have a plan for managing their student loans, while 20% indicated they planned to use federal Income-Driven Repayment, and 15% intended to pursue the Public Service Loan Forgiveness (PSLF) program.
|
How respondents plan to manage their student loans |
|
Plan to use Public Service Loan Forgiveness (PSLF) |
15% |
|
Plan to use Income-Driven Repayment (IDR) |
20% |
|
Don't have a plan |
26% |
Confidence is another major concern, as 61% of borrowers surveyed reported a lack of competence in their repayment strategies while only 13% reported feeling confident in their approach.
How knowledgable people feel about repayment options:
Impact of student loans on financial futures
In addition to being difficult to navigate, the student loan landscape has the potential to largely affect borrowers’ overall financial well-being and long-term goals. The survey revealed that student loan debt has delayed significant life milestones for respondents, with borrowers reporting the following impacts:
- 79% struggle to save for emergencies or retirement
- 75% are unable to invest for the future
- 52% are unable to purchase a home
- 35% are postponing starting a family
What has the 35-44 age group been most prevented from doing because of student loan debt?
Where do borrowers go from here?
With the new presidential administration, student loan repayment and forgiveness programs may be subject to change. While it is important for borrowers to stay abreast of regulation changes, it’s also complex and may be difficult to know which options may be best. Fortunately, Laurel Road offers free student loan consultations, which allows borrowers the opportunity to meet with student loan experts who can help them navigate their student loan debt.
About the survey
Methodology
This random double-opt-in survey of 500 American nurses and 300 American doctors (250 physicians and 50 dentists) who currently have either private or federal student loans was commissioned by Laurel Road between Jan 2 and Feb 12, 2024. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
