A survey has revealed that 93% of student loan borrowers are not ready to resume payments.

• Federal student loan payments will resume on May 1, after a two-year hiatus.
• A report indicates that nearly all, or 93%, of borrowers claim they are not financially ready.

Over two years have passed since the last time most borrowers made their monthly student loan payment.

According to a survey of over 23,000 student loan borrowers by the Student Debt Crisis Center and Savi, only 7% are prepared to resume payments on May 1.

"The payment pause has been everything for Allison Newmes, 44. She has no words to express her gratitude."

In Youngsville, North Carolina, Newmes, a mother of three, has a federal loan balance of approximately $46,000 and monthly payments of over $600.

Ernest, her husband, is a mechanical engineer but their substantial medical debt has left the couple with no financial safety net. They've had to cash in their 401(k) retirement accounts to make ends meet.

She expressed uncertainty about how they would manage their upcoming student loan payments.

"It's like we're falling through the cracks."

Preparing for student loan payments to resume: Tips and Strategies The Education Department has announced the forgiveness of $415 million in student debt. Is college really worth it? A comprehensive analysis.

During the government's payment pause, interest on most federal student loans was suspended. As a result, once payments resume, the amount due will be largely the same.

However, the cost of living has dramatically changed.

The Consumer Price Index, which measures the costs of consumer goods, has increased by 7.5% in the most recent government data, marking the fastest annual pace in approximately four decades.

Despite the increase in wages, inflation has reduced pay by 1.7% in the past year.

Due to her husband's disability and inability to work, Laura Estrada, 56, must now hold two jobs to meet their financial needs.

In Wichita Falls, Texas, rents are increasing, and Estrada and her husband pay $1,350 monthly for their housing, which she considers affordable.

She has a degree in English and a Master's in criminal justice, but with $155,000 in outstanding student loans, they struggle to stay afloat, she said.

Estrada stated that the payment pause has been beneficial, allowing them to afford groceries and the small, essential things.

If her loan payments increase, she may need to consider a third job, she said.

According to the Student Debt Crisis Center and Savi, 92% of fully employed borrowers expressed concern about affording their payments due to rising prices.

The pandemic and inflation pose significant challenges for borrowers who are unable to resume payments, are struggling to meet basic needs, and are uncertain about their future options, according to Natalia Abrams, president and founder of the Student Debt Crisis Center.

She suggested considering an income-driven repayment plan for some.

These programs aim to reduce borrowers' monthly payments by capping them at a percentage of their discretionary income and forgiving any remaining debt after 20 or 25 years.

You may be eligible for a deferment or forbearance, which allows you to pause your loan payments for up to three or one year, respectively. However, interest will still accumulate during this time.