Survey Shows 44% of Student Loan Borrowers Plan to Invest in Crypto or NFTs
Since the US student loan freeze began in March 2020, 18% of borrowers have used the extra money to invest in crypto or NFTs, a recent study has shown.
College Finance, a company that provides information on student finance options, interrogates over 1,000 borrowers to investigate how they are preparing for the resumption of student loan payments and what they have done with pocket money that did not need to be used for debt .
Meanwhile, the Biden-Harris administration expanded suspension of student loan payments and interest relief until May of next year, saving 41 million borrowers $ 5 billion per month.
The extra money
With the onset of the pandemic in the United States, federal student loan interest rates were set at 0% and payments were suspended.
Borrowers surveyed were spending an average of $ 385 on their student loan debt on a monthly basis, but since the hiatus, that money has been reallocated by the majority, with just 12% reporting continuing their payments.
Since the break began, 18% of borrowers have used the extra money they pocketed to invest in crypto or NFTs.
Gen Z (20%) were more likely to use the extra funds pocketed to invest in crypto and NFTs than Gen Y and Gen X (18% each).
Prepare for pesky payments
When payments resume, 30% of borrowers surveyed said they plan to ask for a loan forbearance or deferral, and nearly one in four plan to avoid payments altogether, according to College Finance.
Meanwhile, survey results also revealed that nearly one in ten borrowers plan to rely on crypto and NFT income to make their payments when the break is over.
However, a larger number of borrowers surveyed (44%) said they plan to invest in crypto or NFTs, as they prepare for the resumption of payments, with Gen Z again being the group. most likely to do so.
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