FOR IMMEDIATE RELEASE:
May 8, 2013
New Report Shows Impact of Private Student Debt on Borrowers
[WASHINGTON, DC] – A new issue brief released today by Young Invincibles details the economic impact student debt has on borrowers. The report, “BORROWER IN DISTRESS: A Survey on the Impact of Private Student Loan Debt,” provides details of a survey of the experiences of over 9,500 private loan debtors. Respondents to the online, self-selected survey described both difficulties in finding alternative repayment options during times of personal struggle, as well as barriers to economic opportunity.
-Almost 40 percent of respondents said that their lender was either very unwilling to negotiate new terms during times of financial distress, or that they could not even reach someone to receive an answer;
-About 15 percent of borrowers said they had been denied a mortgage because of their debt;
-35 percent borrowed money from friends or family to keep up with bill payments;
-About 47 percent said they put off buying a house, and the same percentage said they put off buying a car, to keep up with their payments.
“Too many private loan debtors have found that when they face times of extreme financial distress, they are unable to find any repayment relief on their private loans,” said Jen Mishory, Deputy Director of Young Invincibles. “Even those who are able to make payments end up pushing off major life decisions to keep up. We are troubled by the personal and economic impact of high loan burdens and unyielding lenders.”
To read the entire report “BORROWER IN DISTRESS: A Survey on the Impact of Private Student Loan Debt,” visit: https://younginvincibles.org/wp-content/uploads/2013/05/Borrower-in-Distress-5.8.13.pdf.
Young Invincibles is a national organization committed to amplifying the voices of young Americans, ages 18 to 34, and expanding economic opportunity for our generation. Young Invincibles ensures that young Americans are represented in today’s most pressing societal debates through cutting-edge policy research and analysis, and innovative campaigns designed to educate, inform and mobilize our generation to change the status quo.