The number of student loan payments grew 127
percent in October compared to the previous month
PLANO,
Texas, Dec. 21, 2023 /PRNewswire/ -- Alkami
Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based
digital banking solutions provider for financial institutions
in the U.S., recently released data focused on student loan payees
and found that half of new student loan monthly payments in
October 2023 were over $200, with the median new student loan monthly
payment being $206.
The number of student loan payments grew 127 percent in October
as compared to the previous month, after the pause on
federally-backed student loans came to an end and borrowers were
required to begin making payments on these loans in October.
The resumption of student loan payments puts an even further
strain on borrowers, who are now facing more volatile economic
conditions than before the federal student loan repayment pause,
paired with a new monthly expense. As a benchmark, the data showed
that the same group had a median monthly credit card payment of
$349, which suggests that a
$206 increase in monthly expenses
driven by the resumption of student loan repayments may represent a
significant financial commitment for these borrowers.
"Not all student loan borrowers were affected the same way after
the pause on student loan payments came to an end," said
Mark Leher, director, product
management at Alkami. "The resumption of payments means many are
now being burdened with a new monthly expense amidst an
inflationary environment. Some borrowers are able to service the
resumed payments, but discretionary income - and therefore spending
- is impacted. Other borrowers are now scrambling to meet the
payment, and may be increasing debt in other areas to
compensate."
Financial institutions need to understand that the end of the
student loan pause may put additional financial strain on borrowers
and create unique challenges for their account holders that need to
be addressed.
Alkami Telemetry Data was sourced from a panel of more than 2.5
million account holders and over 1.5 billion transactions.
About Alkami
Alkami Technology, Inc. is a leading cloud-based digital banking
solutions provider for financial institutions in the United States that enables clients to grow
confidently, adapt quickly, and build thriving digital communities.
Alkami helps clients transform through retail and business banking,
digital account opening, payment security, and data analytics and
marketing solutions. To learn more, visit www.alkami.com.
Media Relations Contacts
Vested
alkami@fullyvested.com
Marla Pieton
marla.pieton@alkami.com
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SOURCE Alkami Technology, Inc.