Gen Z borrowers are unaware of Covid-19 student loan relief programs.
Struggling to pay your student loan debt amid coronavirus? You can now delay 3 payments
Twenty-one out of the 24 largest student loan servicers in the state of California have agreed to a 90-day forbearance, meaning student borrowers may stop repaying their loans without facing penalties such as late fees or fines, debt collection lawsuits, or negative impacts to their credit ratings.
It turns out Gen Z may be particularly hard hit. For one thing, they may not be aware of programs designed to help ease the pain of paying back student loans.
The U.S. Department of Education has allowed those with federal loans to pause their payments until October — yet Gen Z had the lowest awareness of this relief than any other age group, according to a survey from Student Debt Crisis.
The advocacy organization, whose mission is overhauling student debt and higher-education loan policies, polled close to 39,000 student loan borrowers across America in May.