"A new survey of federal student loan borrowers by the Institute for College Access and Success, a nonprofit focused on college affordability, found that about a fifth of borrowers are currently in either delinquency or default. "These findings bring even greater urgency to ongoing concerns about a looming 'default cliff,' where an unprecedented number of borrowers struggle so much to repay their loans that they default on their payments in droves," Michele Zampini, TICAS's associate vice president for federal policy and advocacy,"
"Just over half of respondents (52 percent) said their debt has negatively affected their ability to save for retirement, and 45 percent said the same about their ability to find and afford housing. Slightly fewer participants said that their student loan debt was "worth it"-41 percent-than said it wasn't, at 48 percent. Advanced degree holders were more likely to consider their debt "worth it" than those with an associate or bachelor's degree, as were male borrowers compared to female borrowers."
About 20 percent of federal student loan borrowers report current delinquency or default. A substantial group of delinquent borrowers faces a heightened risk of mass defaults described as a looming "default cliff." The Department of Education noted that payments paused since March 2020 prevented new defaults, but many borrowers remained delinquent and could default once pauses ended. Default carries severe and punitive consequences. Over half of respondents (52 percent) say debt harmed retirement savings, 45 percent say it affected housing access, and 48 percent say debt was not "worth it," with perceptions varying by degree level and gender.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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