CFPB Survey Reveals Impacts of Student Loan Debt Relief and Repayment Challenges

WASHINGTON, D.C. - Today the Consumer Financial Protection Bureau (CFPB) issued its first results from its Student Loan Borrower Survey, providing insights into the effects of student loan debt relief programs and the challenges borrowers face in navigating repayment options. The survey, conducted between October 2023 and January 2024, gathered data from a representative sample of student loan borrowers as the federal student loan payment pause ended and many borrowers returned to repayment. The report found nearly 61% of borrowers who received debt relief reported positive life changes. In addition, nearly 42% of federal student loan borrowers have only ever used the standard repayment plan, with many unaware of alternative options that could help lower their payments.

"Our survey reveals that student loan debt relief has been a lifeline for many borrowers, allowing them to make positive changes in their lives," said CFPB Director Rohit Chopra. "However, it's clear that many borrowers are struggling with repayment, and there is more work to be done to ensure repayment options are accessible and effective."

The CFPB designed the Student Loan Borrower Survey to gather comprehensive data on borrowers' experiences with repayment, loan servicers, federal programs, loan forgiveness, and discharges. This data will help inform policy decisions and help identify areas where borrowers may need additional support.

Today's report provides insight into the experiences of student loan borrowers, including how they struggle making payments, how student loans impact financial and nonfinancial decisions, and how borrowers interact with their loan servicers. Among findings in today's report:

• A majority of borrowers who received debt relief said it gave them the opportunity to pursue important life decisions. Across all borrowers who received debt relief, 61 percent reported that the relief had allowed them to make a beneficial change in their life sooner than they otherwise would have.
• Debt relief predominantly reached borrowers with below-median incomes. In 2022, the median household income for student loan borrowers who reported receiving debt relief was between $50,000 and $65,000, below the national median of nearly $75,000. The amount of debt relief varied widely, with 10% of borrowers receiving $5,000 or less, 10% receiving $99,000 or more, and the median borrower receiving $20,000.
• Many borrowers are unaware of alternative repayment options or have trouble accessing them. Nearly 42% of all surveyed federal student loan borrowers report only ever being on the standard repayment plan for their federal student loans. Among these borrowers, 31% reported not knowing they could choose a different payment plan, such as a more affordable income-driven repayment plan. For those borrowers who were able to enroll in an income-driven repayment plan, nearly 45% said they experienced some difficulty in either enrolling in or using the income-driven payment plan.

Since opening its doors in 2011, the CFPB has taken multiple enforcement actions for shoddy student loan servicing practices, including last month ordering Navient to pay $120 million for years of misleading borrowers about income-driven repayment plans and steering borrowers toward costlier payment options. The CFPB also has multiple tools and resources available for students who currently have loans or are considering getting a loan.

Read today's report, Insights from the 2023-2024 Student Loan Borrower Survey.

Read consumer complaints about student loan servicing.

Consumers can submit complaints about financial products and services by visiting the CFPB's website or by calling (855) 411-CFPB (2372).

Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected]. To learn more about reporting potential industry misconduct, visit the CFPB's website.