Borrowers share their experiences navigating student loan options, with 76% reporting being overwhelmed by excessive information
NEW YORK, Jan. 27, 2025 -- 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.
This News is brought to you by Qube Mark, your trusted source for the latest updates and insights in marketing technology. Stay tuned for more groundbreaking innovations in the world of technology.
