New Survey Highlights Growing Confusion Over July 1st Changes to Student Lending Impacting Millions of Student Loan Borrowers

FOR IMMEDIATE RELEASE

August 13, 2026

Contact:

Natalia Abrams

Email: natalia@studentdebtcrisis.org

WASHINGTON D.C. — A new survey from Student Debt Crisis Center (SDCC) highlights the growing confusion surrounding July 1st changes to student lending and the inability of borrowers to make their newly increased student loan payments. In a staggering finding, 67% of borrowers reported they will not be able to afford their new monthly payment amount — an early indicator of a larger default wave yet to come. Gathering statistics on the widespread confusion resulting from One Big Beautiful Bill Act (OBBBA) changes, this survey adds quantitative data to what we already know: the student loan repayment system has become more chaotic, dysfunctional, and confusing than ever. As the system continues to fail borrowers, the need for an immediate pause on all federal student loan payments and interest grows stronger and more urgent by the day. With 3,208 respondents spanning all 50 U.S. states, Washington, D.C., and Puerto Rico, the survey captured a broad, geographically diverse cross-section of borrowers.

“There are over 42 million student loan borrowers and a majority of them cannot make their payments – this is a serious indicator of complete system failure that can no longer be ignored,” said Natalia Abrams, President of the Student Debt Crisis Center. “Instead of focusing on ‘streamlining’ the federal student loan system, it’s time for the Department of Education to face the reality they continuously ignore: payments are unaffordable, and a crisis is imminent.”

Key survey findings include:

• Overwhelming Majority of Borrowers Cannot Afford New Payment Amounts - 67% of respondents reported they are unable to afford their new payment amounts. This follows preexisting data found by Student Debt Crisis Center’s Post-SAVE Reality Check Report reporting the new median monthly increase in student loan payments as $500. 

• Severe Impact on Parent PLUS Borrowers - 72% of respondents holding Parent PLUS loans reported they will not be able to afford their new monthly payments. Additionally, 62% of Parent PLUS borrowers reported they were not aware their loans do not qualify for the new Repayment Assistance Plan (RAP). Another 62% were unaware their only post-July 1st repayment option, the Tiered Standard Plan, does not qualify for Public Service Loan Forgiveness (PSLF).

• High Number of Borrowers Unaware of Key Repayment Plan Phaseout - 33% of respondents were not aware the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans are slated to phase out in 2028. Of these respondents, 3 out of 4 (74%) have been borrowing for 11 years or longer.

As new provisions included as part of the One Big Beautiful Bill Act (OBBBA) went into effect on July 1st, including the beginning of the end for the now-defunct Saving on a Valuable Education (SAVE) Plan, borrowers are facing a system in disarray. As repayment plan options change and payments exponentially increase for millions of Americans, borrowers are left unable to afford both basic living expenses and making their student loan payments on time.

This survey points to a larger, more troubling trend: the Trump/McMahon era Department of Education cannot manage the very system it built. Changes meant to simplify repayment have instead made it more confusing and less affordable than ever, leaving borrowers to pay the price for the Department of Education’s own dysfunction.

For more information, to schedule an interview, or to request additional data, please contact Natalia Abrams at natalia@studentdebtcrisis.org.

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ABOUT Student Debt Crisis Center

Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

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Please read compelling borrower stories below. If you’d like to get in touch with these borrowers or additional borrowers, contact Natalia Abrams at natalia@studentdebtcrisis.org.

“My monthly estimated student loan payment has more than doubled. I am sitting in the SAVE plan accruing a ridiculous amount of interest as I cannot afford the new monthly payments. This has pushed me into an active financial crisis. I am a single mother with three jobs and solely responsible for supporting my household and funding my child's education. Despite working grueling hours, my total combined income is entirely consumed by basic, non-negotiable living expenses: rent, utilities, food, and basic healthcare. I have zero discretionary income. Something has to be done! I know I am not alone. Our leadership needs to help us!” - Mary, Illinois

“I am currently 45 years old and married with two children. My wife and I make enough to get by and to put a little away to save. We are currently having to decide between the new inflated payments, which are over $1,000/month and putting food and other necessities on the table. My wife needs to go back to school to finish her degree after putting it on hold for over 10 years. And with her added tuition costs, I don't know how we will be able to afford to live while making these loan payments.” - Joe, New Jersey

“I have had student loans since 2007. I have not been able to pay. I was on the SAVE plan paying $100 a month. Now they want $2065 a month. How am I supposed to live!! I have not taken a vacation because I am trying to keep up with bills. I can hardly keep up with anything. I can not afford $2065 per month. My mortgage is $2100 and my take home is $4k a month. This has given me so much anxiety. I am nervous all the time... Why are they doing this!” - Yesenia, North Carolina