One in Five Student Loan Borrowers Avoid Making Payments: Report

One in five borrowers with outstanding student loans have made no payments, as many hold out for potential debt relief, a recent survey reveals. The survey, published on Sept. 5 by Intuit Credit Karma, found that 20 percent of student loan borrowers said they have yet to make any payments on their loans. This figure rises to 27 percent among borrowers with a household income of less than $50,000. More than half (55 percent) of respondents reported being unable to afford their student loan payments, while nearly half (49 percent) said they feel “financially unstable.” The survey underscores the financial strain faced by borrowers, with affordability challenges largely attributed to the high cost of living (69 percent). Many loan holders said they are forced to make difficult trade-offs, with 38 percent saying they are falling behind on other bills—such as auto loans, mortgages, or credit card payments—to meet their student loan obligations. Additionally, 39 percent of borrowers said they are prioritizing paying off higher-interest debt over their student loans....