- On February 1, 2022, the pandemic relief student-loan borrowers have enjoyed will be stripped away whether they’re ready or not–most are not.
- Cody Hounanian, executive director of the Student Debt Crisis Center, said, “nine in ten borrowers say they’re not ready to resume payments on February 1.”
- “When we think about that huge, huge chunk of their income going to student loans…it’s a recipe for financial disaster,” Cody Hounanian pointed out.
Ayelet Sheffey from Insider writes:
“On February 1, 2022, the relief student-loan borrowers have had since the start of the pandemic will be stripped away and they will be thrown back into repayment — whether they’re ready or not.
And most of them are not.
The Student Debt Crisis Center, in partnership with Savi — a social impact technology startup — released the results of the fourth installment of the Student Debt x COVID-19 series on Wednesday examining the impact of the pandemic on student-loan borrowers. It found that although student-loan company communication to borrowers has improved since June, 89% of fully-employed borrowers say they do not feel financially secure enough to resume payments in a few months.
One in five of the respondents said they will never feel financially-secure enough to restart their student-loan payments.
“What we saw this time around is that student loan borrowers are being informed by their loan servicer and by the Department of Education at higher rates, and student loan borrowers are actually employed at very high rates,” Cody Hounanian, executive director of the Student Debt Crisis Center, told Insider. “And despite that good news, nine in ten borrowers say they’re not ready to resume payments on February 1…”
See full story here.