After a nearly three-year hiatus due to the coronavirus, nearly 60% of Americans who defaulted on their student loans were reported to have missed their monthly payments, some of whom intended to see the government cancel their debt.
Thus, since October, 25% of student loan borrowers have not made any payments. In addition, 9% of them admitted to boycotting their debt payments in order for the government to cancel them, according to a recent intelligence.com poll.
“While the frustration behind the student loan boycott is understandable, it is unlikely to lead to positive change,” said Jake Hill, founder and CEO of DebtHammer, adding that it is more likely to have a negative impact on their credit score.
There is no way to pay back
Among those who had not made any payments since October, 69% said they could not afford them. In fact, the vast majority (63%) have an annual salary of less than $45,000. The latter will benefit from the fact that the Biden administration will not impose a penalty on them until September 2024.
“Borrowers struggling to repay student loans should consider income-driven plans, loan forgiveness programs, and loan consolidation as potential strategies for managing their debt,” noted Eric Eng, founder and CEO of AdmissionsSight.
The survey was conducted in January among borrowers of $1,000 federal student loans.
