1 in 4 Borrowers Say They’ll Clear Student Debt Soon

A Quarter of Student Loan Borrowers Expect to Pay Off Debt This Year

Millions of Americans are facing challenges keeping up with their student loan payments, but not everyone is feeling weighed down by debt. According to a recent survey, nearly one in four borrowers expects to finish paying off their loans this year.

A Divided Outlook

Out of roughly 42 million borrowers, more than 4 million were in late-stage delinquency last quarter—the highest number of borrowers on the verge of default ever recorded by the Department of Education.

Yet the same survey by Data for Progress found that about 24% of borrowers expect to pay off their loans within the next year.

• Borrowers under 45: 27% expect to be debt-free within a year.
• Borrowers 45 and older: Only 21% expect to finish paying off their loans.

Older Borrowers More Concerned

The survey revealed that older borrowers are generally more pessimistic about their outlook:

• Nearly 20% of borrowers over 45 said they don’t believe they’ll ever be free of student debt.
• By contrast, only 5% of borrowers under 45 said the same.

Payments Resume, Collections Restart

Earlier this year, the Department of Education restarted payments for all borrowers and resumed collections on defaulted loans in May. This has created significant financial strain:

• Over two-thirds of surveyed borrowers said the resumption of collections has affected their finances.
• 18% reported a significant impact.

Data from the New York Federal Reserve shows that student loan debt is now becoming more delinquent than any other type of household debt.

What It Means for Borrowers

For some, optimism about paying off student loans reflects strong financial planning or favorable circumstances. For others, particularly older borrowers, the struggle continues—highlighting the uneven impact of student loan debt across age groups.