Money Matters - Student Loan Overhaul

Beginning July 1st, millions of student loan borrowers will see costs and repayment plans change dramatically. A new survey from Credible finds 71% of Americans are unaware of upcoming changes, even though 44% report having federal student loans.

Here’s how loan balances are impacting borrowers’ wallets:  

• With a median loan balance of $23k, 73% are stressed by their current monthly payments
• 47% of borrowers say their student debt delays savings goals
• Over 1 in 3 (39%) say it delays paying off credit cards or other debt

As the rollout approaches, many are rethinking their next steps: 42% say they are reconsidering their repayment strategy in light of the new RAP plan, which extends the forgiveness timeline to 30 years. 30% say the changes make them less likely to borrow if federal loans no longer cover the full cost of college attendance. Still, the majority (63%) are less likely to refinance with a private loan than federal.