[Editor's note: The Higher Education Inquirer is presenting this press release for information only. This is not an endorsement of the organizations mentioned in article.]
NEW YORK, Jan. 27, 2025 /PRNewswire/ -- A new survey, The Student Debt Dilemma: The Impact on Financial Milestones, released today by Laurel Road,
a digital banking platform of KeyBank with specialized offerings for
healthcare and business professionals, in partnership with Luminary, a global professional education and networking platform, and conducted by Kantar, reveals the obstacles borrowers face in managing student loan repayment – from information overload to confidence gaps.
The survey of 1,714 U.S. adults found that 70% felt overwhelmed
when navigating repayment options, with 76% of respondents experiencing
an overload of information, underscoring the significant anxiety and
confusion faced by borrowers. These findings underscore the impact of
debt on milestone life events as well as the difficulty of navigating an
intricate repayment system.
Challenges amid Regulatory Changes
Recent
changes and fluctuating regulations in the federal student loan system
have created ongoing uncertainty for borrowers navigating their
repayment options. According to the survey, 82% of respondents aged 25
to 44 reported feeling "unsure what plans/options are right for me,"
demonstrating the ever-changing environment as a primary pain point.
Additionally, 58% of individuals in the combined 25-44 age group
reported feeling moderately overwhelmed – a significantly higher
percentage compared to the 45 and older age group (34.8%)– emphasizing
the unique challenges younger borrowers face in making informed
decisions.
Low Levels of Confidence in Repayment Strategies
Navigating
student loan repayment is a complicated process, requiring borrowers to
understand available options, conduct thorough research to identify
loan management opportunities, and select the most appropriate repayment
plan or forgiveness program.
According to the survey, 26% of
respondents noted that they did not have a plan for managing their
student loans, while 20% indicated they planned to use Federal
Income-Driven Repayment, and 15% intended to pursue the Public Service
Loan Forgiveness (PSLF) program.
Confidence is another major
concern, as 61% of borrowers surveyed reported a lack of confidence in
their repayment strategies while only 13% reported feeling confident in
their approach.
"This study confirms everything we believed to be
true relating to confusion and lack of confidence student loan borrowers
face today. Information overload and ambiguity has left borrowers
yearning to understand the repayment and forgiveness options available
to them, and to receive this information in a clear, concise manner,"
said Alyssa Schaefer, General Manager and
Chief Experience Officer at Laurel Road. "Laurel Road is at the
forefront of helping borrowers gain their confidence by offering free
consultations with student loan experts who can help them make informed
decisions, navigate the complexities of repayment, and build the
confidence needed to reach their financial goals – ultimately securing
their financial futures."
Impact of Student Loans on Financial Futures
In
addition to being difficult to navigate, the student loan landscape has
the potential to largely affect borrowers' overall financial well-being
and long-term goals. The survey revealed that student loan debt has
delayed significant life milestones for respondents, with borrowers
reporting the following impacts:
- 79% struggle to save for emergencies or retirement
- 75% are unable to invest for the future
- 52% are unable to purchase a home
- 35% are postponing starting a family
"Luminary has seen first-hand the impact of student loan debt on
our Members, from a lack of understanding about available options to
the affect it has on an individual's mental health due to stress, worry
and anxiety, " said Luminary founder and CEO Cate Luzio. "While this
isn't new information for us, given our longstanding partnership
with Laurel Road, we felt this survey was necessary to demonstrate the
real toll it's taking on people. As we prepare for a new administration
in 2025, this is top of mind as we continue developing programming to
educate and inform those affected."
Delays in life milestones not
only affect individual wellbeing but also pose broader risks to economic
stability and financial security. Through online resources and student loan consultations,
borrowers can gain confidence in understanding and tackling student
loan repayment and get on track for important financial milestones.
For additional results from this survey, visit http://laurelroad.com/resources/financial-survey-student-debt-dilemma/
Methodology
This survey was conducted online from September 30, 2024, to October 31,
2024 among 1,714 U.S. adults with either private or federal student
loans, by Luminary and the Kantar Profiles Respondent Hub. The primary
age group analyzed ranged from 25–44 years old, though responses were
collected from ages 18–65+. The gender breakdown of the respondents was
47% male, 51% female, 2% non-binary, and 0.4% preferring not to answer.
Statistical significance testing was completed between groups to ensure
the results did not occur by chance.
About Laurel Road
Laurel
Road is a digital banking platform and brand of KeyBank that provides
tailored offerings to support the financial wellbeing of healthcare and
business professionals. Laurel Road's banking and lending solutions –
including Checking and High Yield Savings accounts, Student Loan
Forgiveness Counseling, Student Loan Refinancing, Mortgages, Personal
Loans, and more – provide our members with a simplified, personalized
experience that helps them better navigate their financial journey with
ease.
Laurel Road has reimagined banking and financial management
for physicians and dentists through Laurel Road for Doctors, a tailored
digital experience made up of banking, insights, and exclusive benefits
to provide the financial help and peace of mind they need through each
career stage. In spring of 2022, Laurel Road also launched Loyalty
Checking, the first checking account designed with nurses in mind,
furthering the company's commitment to healthcare professionals. Visit www.laurelroad.com for more information.
About Luminary
Luminary is
a global membership-based professional education and networking
platform created to address and impact the systemic challenges faced by
women and underrepresented communities across all industries and
sectors, and through all phases of their professional journey. Founded
in 2018 by former finance executive Cate Luzio, Luminary is a dynamic,
gender-inclusive, multi-generational, and intersectional community
focused on creating connection, collaboration, and change through global
expert- and Member-led programming, as well as services, activations,
content, and culture. In addition, Members have access to perks and
amenities including a vast digital content library; a five-floor
building in the heart of NoMad in New York City
that is home to work and social spaces, including a rooftop restaurant;
and entree to Luminary's international Partner Network
of women-forward communities. Luminary continues to build its ecosystem
of high-touch engagement for both individual and enterprise members and
has grown to be a multimillion-dollar global B2C and B2B business with
more than 15,000 members and over 100 enterprise members. In late 2023,
the company acquired The Cru to add to its robust product offering, and
in January 2025 announced its acquisition of Hey Mama.
Media Contact: laurelroadpr@kwtglobal.com
