Federal student loan borrowers are facing a confusing and ever-changing repayment landscape as lawsuits challenged plans offered under the Biden administration, leaving a majority of borrowers unnerved a new survey found.

Almost 70% of student loan borrowers surveyed by Laurel Road, a digital banking platform specializing in student loan counseling and budgeting, said they felt overwhelmed when navigating repayment options.

Frequent Changes, Information Overload Add To Confusion

Billions of borrowers enrolled in the Saving for a Valuable Education (SAVE) plan have been placed in forbearance as ongoing lawsuits block the repayment plan. To give borrowers more repayment options, the Department of Education reopened two older repayment plans.

These plans were meant to provide borrowers with more stability and paths to forgiveness. But the reality couldn't be more different.

The survey also found that 76% of borrowers are experiencing an overload of information, and 82%, aged 25 to 44, are unsure what plan was right for them.

"Information overload and ambiguity has left borrowers yearning to understand the repayment and forgiveness options available to them, and to receive this information in a clear, concise manner," said Alyssa Schaefer, general manager and chief experience officer at Laurel Road.

The New Administration May Complicate Matters Further

Already, many borrowers say they are struggling to complete financial life goals as student loan debt weighs them down, and unresolved repayment plans make it hard to plan for the future.

The survey found that 79% of borrowers struggle to create an emergency or retirement fund, 75% are unable to invest, 52% cannot buy a home, and 35% are postponing starting a family due to student loan debt.

Borrowers' confusion could be worsened if President Donald Trump's administration, which threatened to unwind many of Biden's repayment and forgiveness plans, follows through on its promises.

Republican leaders have been critical of Biden's other repayment and forgiveness plans as they would increase the federal budget and tax costs. A top Republican lawmaker told Forbes in December that student loan system reforms could come in early 2025 and block more than just the SAVE plan.

Student loan borrower advocates warn that the new majority-conservative Congress could increase monthly student loan payments and reduce grants for college students through budget cuts.