A recent study by the CFPB reveals that 30% of federal student loan borrowers have faced hardships and had to forgo essentials like food or medicine.

• According to the Consumer Financial Protection Bureau, 30% of federal student loan borrowers admit to skipping meals or medication because of their monthly loan payments.
• The bureau discovered that 38% of people with federal student loans also had credit card debt that they wouldn't have otherwise, despite skipping necessities.
• A significant number of borrowers reported that their education debt hindered their ability to purchase a home or start a family.
• CFPB Director Rohit Chopra stated that it's evident that numerous borrowers are facing difficulties in repayment.

Over one-third of federal student loan borrowers admit to skipping meals or medication due to monthly payments.

A recent survey by the Consumer Financial Protection Bureau, which involved over 3,000 respondents with active or recently active student loan accounts, has revealed a disheartening result.

The bureau aimed to assess the impact of resuming student loan payments in September 2023, after a pause during the Covid-19 pandemic, on the financial well-being of tens of millions with education debt.

Credit card users are paying off last year's holiday debt, while holiday shoppers plan to spend more and take on debt. In 5 cardholders, a credit card has been maxed out or nearly reached its limit.

The bureau found that 38% of borrowers carried credit card debt they wouldn't have otherwise, while 44% said their education debt delayed when they could buy a home and 26% said the debt pushed back when they'd start a family.

Rohit Chopra, CFPB Director, stated that it's evident that numerous borrowers are facing difficulties in repayment.

The Congressional Research Service reported in 2022 that the outstanding education debt in the U.S. surpassed $1.6 trillion. Approximately 43 million people, or 1 in 6 adult Americans, hold student loans, according to the report.

An end to Biden-era student loan aid

The CFPB report, published at the end of President Biden's term, argues that the administration's student loan relief initiatives were and remain necessary.

Biden has forgiven more federal student loan debt than any other president.

The Education Department has canceled the student loans of approximately 5 million individuals, totaling over $175 billion in relief, through enhancing existing student loan relief programs that had been problematic.

According to a CFPB report, borrowers whose debt was forgiven were able to make positive changes in their lives, with nearly half saving more than they would have otherwise. Additionally, 9% of borrowers changed jobs or started a business, and 19% sought medical treatment after their debt was excused.

Experts predict that President-elect Trump will likely abandon most of the Biden administration's initiatives to provide more extensive student loan cancellation. Trump has previously criticized these policies as "vile" and "not even legal."

Biden's student loan relief efforts have been characterized by Republicans as a form of financial assistance for those who are already financially secure.

In April 2022, JD Vance, the Vice President-elect of Ohio and a Yale Law School graduate, wrote on X that forgiving student debt is a significant benefit to the wealthy.

He wrote that Republicans should fight this with all their energy and power.

The median household income for those who received student loan forgiveness was between $50,000 and $65,000, according to the CFPB. In contrast, the median household income in the U.S. is over $80,000.