Over 19 Million US Student Loan Borrowers Aren’t Paying Their Debt

United States North America Higher Education News Statistics by Erudera News Jul 10, 2024

student loan payment

Almost 20 million student loan borrowers in the United States are not making their debt payments, the newest data from the Department of Education shows.

Currently, about 43 million borrowers owe more than $1.6 trillion in student loan debt. Official data indicates that, on average, about $28,950 is owed per borrower, Erudera.com reports.

From March 13, 2020, until September 1, 2023, payments and interest accumulation on most student loans were paused due to the COVID-19 spread.

Six months after that pause ended, nearly 20 million student loan borrowers resumed payments as scheduled. Nonetheless, about 19 million borrowers did not continue making payments, thus leaving their accounts delinquent, in default, or on pause.

Borrowers default if they go 270 days or nine months without making payments. Figures show that one-third of all federal student loans have been defaulted on at some point.

“The nonpayment rate really is emblematic of a system that’s not doing its job,” managing counsel for the Student Borrower Protection Center, Persis Yu, told the New York Times.

Most (92 percent) of all loans are federal student loans, while the remaining are private student loans. Yung people usually have lower balances, while those aged 62 and older have a higher balance at $49,375.

Throughout his term as the US president, Joe Biden has approved nearly $1506 billion in student debt relief through more than two dozen executive actions, benefitting four million Americans.

In August 2022, the Biden administration proposed to cancel more than $400 billion in student debt for millions of Americans. Still, the plan was rejected by the US Supreme Court, deciding the initiative was unlawful.

Last year, Biden introduced the SAVE plan, which includes canceling up to $10,000 for student loan borrowers who make less than $125,000 during the year. Additionally, the plan ensures borrowers will not see their balances rise due to unpaid interest.

“Nearly 8 million borrowers have enrolled in the SAVE plan, 4.5 million borrowers have a monthly payment of $0 under the plan, and an additional 1 million borrowers have a monthly payment of less than $100,” the White House said in a statement on April 8, 2024.

The same plan faced a lawsuit from Republicans arguing the President is again overstepping his powers in creating this plan to cancel student debt. Most recently, two federal judges in Kansas and Missouri temporarily halted some program elements.

A Pew Research Center study found that nearly half of Americans are optimistic that a college degree is worth the investment only if students do not take out student loans. At the same time, 22 percent agreed a degree is worth the money, even if borrowing is necessary.

Read Also:

>> Almost 3 Decades With Student Loan Nightmare

>> Laura’s 13-Year Battle with Student Loan Debt

Related News

students socializing, United States

An increasing number of Americans doubt that a college degree may be worth the time and cost, according to a new poll.

United States

Jul 15, 2024

Women students

The number of women enrolling at universities and colleges in Michigan, the United States after high school graduation has overtaken the number of men, according to official data.

United States

Jul 05, 2024

New York University

The number of international students in the United States is expected to increase anywhere between 1.3 million and 2.8 million by 2034, a new analysis from HolonIQ, an international research firm, predicts.

United States

Jun 19, 2024