New Report Reveals Alarming Trends Among Americans With Student Debt Amidst a Federal Student Loan System Overhaul
- SDCC
- 5 minutes ago
- 3 min read
FOR IMMEDIATE RELEASE
October 22, 2025
Contact: Sabrina Calazans
Washington, DC — As of October 2025, changes to the federal student loan system under the "One Big Beautiful Bill Act" (OBBBA) have yet to take effect. However, right now, millions of American borrowers are already grappling with increasing economic uncertainty. A new report from the Student Debt Crisis Center (SDCC) and Civic Nation exposes deep public distrust in the federal government, extreme financial anxiety, and a poor economic outlook, underscoring an urgent need for transparency, clear and accessible information, and meaningful financial relief. The survey had 5,976 respondents.
Key survey findings include:
Increased Financial Anxiety - 73% of borrowers associate student debt with stress, anxiety, and depression.
Lack of Awareness - 1 in 3 borrowers are unaware of changes happening through OBBBA, and 51% of people in default are unaware of these changes.
Widespread Distrust - Only 34% of borrowers think of the Department of Education website as a trusted messenger, and 1 in 4 borrowers trusts emails from the Department of Education.
Increased Civic Engagement - 82% of borrowers plan to vote in the 2026 elections, with the current student debt landscape directly impacting their desire to take civic action.
Despite borrowers’ efforts to manage their student loans, many feel overwhelmed and abandoned due to the federal government’s failure to provide clear, consistent communication and a functional support system. As the Department of Education prepares to implement changes under the OBBBA, the survey reveals serious financial consequences and insecurities stemming from the lack of clear guidance for borrowers navigating an already complex student loan system.
“Borrowers are doing everything right. They’re showing up, asking questions, and trying to stay on track– but the system is failing them,” said Natalia Abrams, President of the Student Debt Crisis Center. “The lack of clear guidance, especially during such a massive overhaul, as rates for default and delinquency are skyrocketing, leaves people confused, anxious, and dangerously close to financial harm.”
As borrowers attempt to understand what changes will affect them, there have been major shifts in whom student loan borrowers recognize as trusted messengers regarding communications. A very stark increase in disapproval of the handling of the federal student loan portfolio has decreased public trust in the federal government. Similarly, there has been a decrease in trust in the communications coming from the Department of Education. On the other hand, trust in nonprofit organizations like the Student Debt Crisis Center has increased compared to the previous year, showing the valuable impact of grassroots organizations providing accessible information and support.
The report demands urgent action from policymakers, institutions, and loan servicers to guarantee borrowers receive accurate information, accessible resources, and the relief they rightfully deserve. Clear, streamlined communication and support are essential for borrowers to navigate their student loan debt with confidence and make informed decisions. These steps are critical to rebuilding trust in both the student loan system and the federal government.
For more information, to schedule an interview, or to request additional data, please contact Sabrina Calazans at sabrina@studentdebtcrisis.org.
To read the survey report and find quotes from borrowers, click here.
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ABOUT Student Debt Crisis Center
Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.
ABOUT Civic Nation
Civic Nation is an impact hub for ideas, leaders, and initiatives that strengthen civic culture, power, and participation. Rooted in purpose and powered by people, Civic Nation brings together individuals, grassroots organizers, industry leaders, brands, and influencers to take on the biggest issues of our time. Civic Nation is home to five national initiatives: ALL IN Campus Democracy Challenge, Change Collective, It’s On Us, We The Action, and When We All Vote. Learn more here.