CFPB: 63% of Student Loan Borrowers Have Difficulty Making Payments

Most student loan borrowers have had difficulty making their loan payments, but many don’t know they could choose a different repayment plan that could help lower their payments, the Consumer Financial Protection Bureau said Wednesday (Nov. 13).

Forty-two percent of these borrowers have only ever been on the standard repayment plan for their federal student loans, the CFPB said when reporting insights from its 2023-2024 Student Loan Borrower Survey.

“Our survey reveals that student loan debt relief has been a lifeline for many borrowers, allowing them to make positive changes in their lives,” CFPB Director Rohit Chopra said in a Wednesday press release. “However, it’s clear that many borrowers are struggling with repayment, and there is more work to be done to ensure repayment options are accessible and effective.”

Sixty-three percent of borrowers said they had difficulty making their student loan payments and 37% said they had missed at least one payment, according to the insights.

Among the borrowers who have only been on the standard repayment plan, 31% said they did not know they could choose a different plan and 14% said they needed help or more information to choose a plan, per the insights.

“Borrowers who are struggling are especially likely to reach out for help, but many do not have enough information about or have difficulty accessing income-driven repayment (IDR) plan options that could benefit them,” the CFPB said in the insights.

Among the borrowers who did enroll in an income-driven repayment plan, 45% said they encountered some difficulty in enrolling in or using the plan, according to the release.

The CFPB has taken several actions related to student loans in 2024.

In October, the regulator barred dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying the company had misled student loan borrowers about its neutrality and undertook “sham” arbitration proceedings.

In September, the CFPB filed an order to ban Navient from servicing federal direct loans and bar the company from directly servicing or acquiring most loans under the Federal Family Education Loan Program.

In May, the regulator filed a complaint against the National Collegiate Student Loan Trusts and Pennsylvania Higher Education Assistance Agency, alleging they ignored student loan borrowers seeking payment relief.