Who Is Getting Student Debt Relief? Insights from the 2024 CFPB Borrower Survey

Last updated 11/20/2024 by

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Summary:

Student debt relief programs reach a wide range of borrowers, from low-income individuals struggling with financial stability to higher-income professionals in public service and teaching. Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness primarily support borrowers with advanced degrees. While Income-Driven Repayment (IDR) and Total and Permanent Disability (TPD) discharges offer debt relief to those with lower incomes and less education.

Student loan borrowers benefiting from relief programs reflect a broad spectrum of incomes. Nearly half (48%) of borrowers receiving relief in 2022 had household incomes of $50,000 or less, while 15% earned over $125,000, according to the Consumer Financial Protection Bureau (CFPB) survey. By comparison, the national median household income was $74,580 in 2022.

The distribution of borrowers’ incomes varied by relief program. As you would expect, programs like PSLF and Teacher Loan Forgiveness, mostly include professionals in public service or education roles who tend to have higher incomes.

Program	Income under $20,000	$20,001 to $50,000	$50,001 to $80,000	$80,001 to $125,000	Above $125,000
Overall	22%	26%	20%	17%	15%
Public Service Loan Forgiveness (PSLF)	7%	13%	27%	27%	27%
Teacher Loan Forgiveness	5%	11%	28%	27%	29%
Disability Discharge	46%	39%	8%	6%	1%
Income-Driven Repayment (IDR)	24%	38%	25%	7%	5%

Key Insights:

While nearly half of debt relief recipients earn $50,000 or less annually, 15% report incomes exceeding $125,000, highlighting the accessibility of these programs for higher earners, especially in PSLF and Teacher Loan Forgiveness.
Borrowers in PSLF and Teacher Loan Forgiveness programs tend to have steady, higher incomes, with many earning between $80,000 and $125,000.
Programs like TPD discharges focus on the most financially vulnerable borrowers, with 46% earning less than $20,000.

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Educational attainment influences eligibility

Borrowers’ educational backgrounds also shape access to student loan relief programs. Overall, 36% of recipients held postgraduate degrees, while 24% had not completed college.

Educational attainment varied significantly across programs:

Program	Some college or less	Certificate/Associate degree	Bachelor’s degree	Postgraduate degree
Overall	24%	16%	25%	36%
Public Service Loan Forgiveness (PSLF)	8%	7%	31%	54%
Teacher Loan Forgiveness	0%	0%	28%	72%
Disability Discharge	44%	22%	16%	19%
Income-Driven Repayment (IDR)	37%	11%	30%	22%

Key Insights:

All recipients of Teacher Loan Forgiveness hold at least a bachelor’s degree, while a significant portion of PSLF participants have postgraduate degrees.
TPD and IDR discharge recipients often had lower educational attainment, with 44% of TPD beneficiaries and 37% of IDR beneficiaries having some college but no degree.

Savings levels reflect ongoing financial challenges

Many borrowers benefiting from relief programs report limited financial resources:

Median non-retirement savings for recipients was under $1,000.
Median retirement savings was less than $10,000.
Borrowers using PSLF or Teacher Loan Forgiveness tended to have higher savings, reflecting their higher incomes.
However, recipients of TPD and IDR discharges were far more likely to report having no savings, highlighting persistent financial instability.

Relief programs shape career and education decisions

PSLF and Teacher Loan Forgiveness require borrowers to work in specific fields or roles, influencing career and education decisions for many participants. Among borrowers who applied for PSLF:

32% chose a different employer to qualify.
23% adjusted their career paths.
17% selected a different major during college.

For Teacher Loan Forgiveness applicants:

25% selected a different employer.
24% pursued a different career path.
20% changed their major.

These findings suggest that borrowers weigh debt relief program eligibility heavily in their career and education planning.

Who benefits from student debt relief?

Student debt relief programs cater to borrowers with varied financial and educational backgrounds:

PSLF and Teacher Loan Forgiveness support borrowers with advanced degrees and steady, professional jobs in teaching and public service.
IDR and TPD discharges provide critical relief to low-income borrowers and those facing significant hardships, such as disabilities.

While these programs address specific borrower needs, the CFPB’s data highlights that 15% of borrowers benefiting from debt relief earn more than $125,000, underscoring that relief is not limited to low-income groups. At the same time, many recipients remain financially vulnerable, with minimal savings and below-average incomes.

Key takeaways

48% of borrowers receiving debt relief earn $50,000 or less annually, but 15% earn more than $125,000.
Recipients of PSLF and Teacher Loan Forgiveness tend to earn higher incomes and hold advanced degrees.
TPD and IDR discharges primarily assist borrowers with lower incomes and minimal savings.
Relief programs often influence borrowers’ career and education decisions, with many adjusting paths to qualify.

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