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Understanding the Student Loan Crisis

September 8, 2023 • Adulting

What’s Happening with Federal Student Loan Repayment?

Federal student loan interest is resuming on September 1, 2023 after being on pause since March 2020. For students who have federal student loans, it is time to adapt back to budgeting for these payments that will be due starting October 2023.

Student Loan Forgiveness, Or…

While the Supreme Court recently struck down President Biden's plan for sweeping student loan forgiveness, another plan is on the way. This new repayment plan — called the SAVE plan, for Saving on a Valuable Education — allows borrowers to save thousands of dollars by keeping their monthly payments small (as small as $0) while also preventing interest from exploding what they owe. Under this new plan, borrowers would pay back just $6,121 for every $10,000 owed.

While the plan is complicated and may yet undergo court challenges or changes through legislation, it’s one step closer to helping provide relief to those carrying burdensome student loan debt with no end in sight.

Student Loan Debt by the Numbers

Today, student loan borrowers in the United States owe over $1.78 trillion in student loan debt. Forty-five million Americans (about one in five adults) owe on one or more student loans.

People between the ages 25 and 34, are part of the group most likely to have student loan debt, but those 35 to 49, owe the most — more than $600 billion. Women typically borrow more than men and earn more degrees as well. A 2023 high school graduate can expect to borrow an average of more than $37,000 to fund a bachelor’s degree, down from 2022, when high school graduates were likely to take on more than $39,000 in debt.

Talking with a Canopy Credit Union financial coach will help you put your student loan debt into perspective through budgeting and saving strategies designed to help you get ahead and thrive when you arrive. We’re always here to answer your questions, share resources, and point you in the right direction to find solutions.

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