--- title: 45% of Student Loan Borrowers Expect to Go Delinquent When Payments Resume description: A new report finds that 45% of student loan borrowers say they expect to become delinquent when the federal forbearance period ends. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2023-08-14T13:48:53.000Z' modified: '2023-08-14T13:48:53.000Z' section: Personal Finance tags: - News word_count: 499 canonical: https://money.com/student-loan-borrowers-expect-delinquent/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-illustration of graduation hats and a calendar.](https://img.money.com/2023/08/News-45Percent-Borrowers-Delinquent-Student-Loans-October.jpg) Federal student loan payments will begin again this fall, and many borrowers are not prepared. New [survey data](https://www.creditkarma.com/about/commentary/federal-student-loan-borrowers-are-struggling-to-make-ends-meet-before-payments-resume-in-october) from credit monitoring service Credit Karma finds that 45% of borrowers say they expect to "go delinquent" on their loans when the federal forbearance period [ends in October](https://money.com/when-do-student-loan-payments-resume/). (Thankfully, there won't be any penalties for missed payments for the first 12 months after the pause ends — more on that below.) It's no wonder borrowers are worried: In the more than three years since the pandemic pause on federal student loan payments began, living costs have skyrocketed in the United States. [Inflation](https://money.com/inflation-june-2023-rent-insurance/) peaked at more than 9% last summer, [housing costs](https://money.com/home-prices-peak-most-big-cities/) have continued to rise in many cities and credit card debt recently reached an all-time high. At the same time, a growing share of Americans are [raiding their 401(k)s](https://money.com/401k-hardship-withdrawal-increase/) for extra cash. Amid those financial pressures, Credit Karma’s survey found that 44% of borrowers say they believe the return on investment of higher education in America is not [worth the expense](https://money.com/college-costs-no-longer-worth-it-survey/). The average cost of tuition, fees and room and board at a four-year institution for the 2021-2022 academic year was about $30,000, according to [data](https://nces.ed.gov/programs/digest/d22/tables/dt22_330.10.asp) from the Education Department. ## Take control of your student loans today! ### Refinancing your Student Loans could save you money on interest, help pay off your loan faster and even free up extra cash in your budget. Why wait? Click on your state to get started today! [See Details](https://money.com/pr/f1c95df5aba1?ap_referrer=%2Fstudent-loan-borrowers-expect-delinquent%2F) ## What happens if you go delinquent on your federal student loans? The Education Department has built in a 12-month "on ramp" to help borrowers ease into making payments again (and help student loan servicers ease into having to process mass amounts of payments again). From Oct. 1 through next September, interest will accrue, but any missed payments on federal student loans won't lead to default or delinquency. The government also won't report missed payments to credit bureaus or collection agencies during that time, meaning that your [credit score won't take a hit](https://money.com/student-loan-payments-credit-scores/?ref=/when-do-student-loan-payments-resume/) if you aren't able to make payments right away. ## How do borrowers plan to afford their payments? Of the roughly 2,000 borrowers surveyed by Credit Karma last month, about 400 carried federal student loan debt. Of that group, 9 out of 10 say they anticipate needing to make lifestyle changes to afford their monthly payments. Just under half say they’ll need to decrease spending on non-necessities like restaurants and streaming subscriptions, while 40% say they must take on additional work to boost their income. A little more than a third of federal borrowers say they’ll need to apply for an [income-driven repayment plan](https://money.com/save-student-loan-plan-signup/) to reduce their loan burden each month, and about a quarter plan to dip into their emergency savings. To prepare for the return of student loan payments, Money [recommends](https://money.com/prepare-student-loan-payments-resume/) you getting reacquainted with your student loan servicer and the exact details of what you owe. That way, you can evaluate the best repayment option for you and work it into your new monthly budget. ## Refinancing your Student Loan could allow you to payoff your student debt early ### Lower your interest rate or reduce your monthly payment. Click below to get started today! [See Details](https://money.com/pr/u89cb207af31?ap_referrer=%2Fstudent-loan-borrowers-expect-delinquent%2F) ![](https://s3.consumersadvocate.org/prd/image/image/38966/medium_752a1e55-4e21-4d57-a49f-43d51659e66b.webp) Refinance your Student Loan with Credible today! [See Details](https://money.com/pr/jd56c2b26aae?ap_referrer=%2Fstudent-loan-borrowers-expect-delinquent%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/student-loan-borrowers-expect-delinquent/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Personal Finance", "item": "https://money.com/personal-finance/" }, { "@type": "ListItem", "position": 3, "name": "Student Loan Debt", "item": "https://money.com/student-loan-debt/" }, { "@type": "ListItem", "position": 4, "name": "45% of Student Loan Borrowers Expect to Go Delinquent When Payments Resume" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/student-loan-borrowers-expect-delinquent/#webpage", "url": "https://money.com/student-loan-borrowers-expect-delinquent/", "name": "45% of Student Loan Borrowers Expect to Go Delinquent When Payments Resume", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-08-14T13:48:53.000Z", "mainEntity": { "@id": "https://money.com/student-loan-borrowers-expect-delinquent/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/student-loan-borrowers-expect-delinquent/#breadcrumb" }, "dateModified": "2023-08-14T13:48:53.000Z" }, { "@type": "NewsArticle", "headline": "45% of Student Loan Borrowers Expect to Go Delinquent When Payments Resume", "articleSection": "Personal Finance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/08/News-45Percent-Borrowers-Delinquent-Student-Loans-October.jpg", "width": 2880, "height": 1920, "caption": "News-45Percent-Borrowers-Delinquent-Student-Loans-October" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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