Millions of borrowers with existing student loans have yet to make payments since bills resumed in October after a three-year hiatus, and some admitted they refused to pay because of protests.
In an Intelligent.com survey conducted this month of 1,000 federal student loan borrowers, 25% said they made no payments at all, and 9% of them said they deliberately delayed paying their bills in an effort to pressure the government to cancel their debt. .
Of the nearly 1 in 10 delinquent borrowers participating in this student loan repayment “boycott,” 44% said they believed their protest would lead to the cancellation of some federal student loan debt, and 28% thought it was “likely” the boycott would convince the government to cancel all student loan debt, survey finds.
But even if no further debt cancellation comes from the boycott, most of the protesting borrowers believe their efforts will have an impact.
There are 25% who say they don’t make payments at all, and 9% of them say they delay paying their bills on purpose, according to an Intelligent.com survey conducted this month. Getty Images
Eight-six percent told Intelligence.com that it was “very” (45%) or “somewhat likely” (41%) that a boycott would draw attention to the student loan debt conversation.
Sixty-four percent said they believed it was “very” (32%) or “somewhat likely” (18%) that a boycott would help elect a political candidate who believed in loan forgiveness.
Financial experts advise against missing student loan payments for any reason.
Nearly 1 in 10 delinquent borrowers are participating in a student loan repayment boycott. Getty Images for We The 45 Million
“While the frustration behind the student loan boycott is understandable, it is unlikely to lead to positive change,” DebtHammer founder and CEO Jake Hill told the outlet.
“On the contrary, it will destroy the credit scores of those who choose to participate. This may not seem like a major issue in the short term, but defaulting on your student loan payments can make it difficult to get financing for future purchases.”
A large number, 69%, of borrowers who have yet to continue paying their loans say they are not paying bills because they cannot afford it.
Another 18% said they plan to delay until September 2024 to resume payments because that’s when the more severe consequences of missing payments begin.
A good majority believe their loans will be wiped out by President Biden’s loan forgiveness plan, despite the Supreme Court blocking it. AP
Of borrowers who have resumed their payments, 94% told Intelligent that doing so has been financially challenging.
Many borrowers had high hopes that their loans would be wiped out by President Biden’s loan forgiveness plan to wipe out up to $20,000 of debt per borrower, but the Supreme Court struck it down last year.
Since then, the White House has announced other efforts to reduce student loan debt, including erasing $127 billion in debt owed by about 3.6 million borrowers.
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Source: thtrangdai.edu.vn/en/
