Late bill payments and stress reported among SNAP users with student loans

  • Some low-income student-loan borrowers are falling behind on bills
  • Student-loan borrowers on SNAP reported higher rates of late rent and utility payments
  • More than 60% of surveyed users are stressed about student-loan repayments
  • Return of student-loan payments hasn’t significantly impacted consumer spending
  • Biden administration has plans to cancel student debt for certain groups

After the resumption of student-loan payments, low-income student-loan borrowers are facing financial difficulties. Data from Propel reveals that student-loan borrowers on SNAP benefits have higher rates of late rent and utility payments compared to SNAP users in general. More than 60% of surveyed users are stressed about the restart of student-loan repayments. However, the return of student-loan payments has not significantly impacted consumer spending. The Biden administration has plans to cancel student debt for certain groups, providing relief for some of the hardest-hit borrowers.

Factuality Level: 7
Factuality Justification: The article provides data from a new analysis of student-loan borrowers who use the federal government’s Supplemental Nutrition Assistance Program (SNAP) and their rates of falling behind on bills. It also includes quotes from SNAP users with student loans who are struggling to make payments. The article references a survey by the Federal Reserve Bank of New York that found student-loan borrowers would have to cut their spending by $56 a month on average, but notes that it would not result in a significant hit to the broader economy. The article also mentions the Biden administration’s plans to cancel student debt for certain groups of people. Overall, the article provides relevant information and data to support its claims.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of student-loan payments on financially vulnerable borrowers who use SNAP benefits. It includes data on late rent and utility payments and the stress experienced by borrowers. However, it lacks information on bill payments prior to October and does not provide a comprehensive analysis of the broader economic impact of student-loan payments. The article also briefly mentions programs to lower monthly payments and plans for student-debt relief, but does not provide in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide specific information about financial markets or companies impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial vulnerability of student-loan borrowers and the impact of student-loan payments on their ability to pay bills. While it does not mention any extreme events or specific financial markets or companies impacted, it provides insights into the financial struggles of a specific group of borrowers.
Private Companies: Propel
Key People:

Reported publicly: www.marketwatch.com