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More than half (56%) of homeowners are worried that the One Big Beautiful Bill Act, passed by Congress in July, will impact their ability to meet student loan payments now or in the future — despite the fact that they’re sitting on record levels of home equity.
That’s according to a new report released Tuesday by home equity investment platform Point, which combines insights from 1,000 borrowers across multiple surveys conducted in July 2025.
Student loan balances have ballooned over the past 20 years, growing from $260 billion in 2004 to $1.6 trillion by 2025. According to a recent Point survey, 42% of American homeowners are currently paying student debt for themselves or a family member. Another 37% plan to take on student debt in the future — including 10% who don’t currently have any student debt.
The average student loan payment is about $500 per month, about one-quarter of a typical mortgage payment. As a result, 70% of homeowners with student debt say it significantly strains household finances. Older borrowers (55-plus) feel it even more as eight in 10 report moderate or significant impact.
Income strain is contributing to a rise in mortgage delinquencies. ICE Mortgage Technology‘s July 2025 Mortgage Monitor report found that a rise in negative equity and exposure to student debt are creating “pockets of vulnerability” for U.S. homeowners.
As part of the One Big Beautiful Bill Act, five existing student loan plans will be consolidated to a single program. The new plan is expected to raise costs for most undergraduate borrowers at the low and high ends of the income scale, and for nearly all graduate borrowers, while slightly reducing costs for some middle-income undergraduates.
Current borrowers can stay on older plans if they make no changes, but new borrowers will only have access to the new system. Under the new framework, which includes a longer repayment horizon of 30 years, borrowers are expected to repay a greater share of their debt over time due to reduced opportunities for loan forgiveness.
Point found that less than half (48%) of homeowners with student debt plan to stick to the standard repayment plan, while 38% plan to repay it early. Among those who plan to stick to the standard plan, 14% plan to refinance the debt at a lower rate, and 12% expect to participate in a loan forgiveness program.
To mitigate concerns associated with repayment, about one in 10 homeowners say they plan to use home equity to pay off their student debt. Historically, about 5% of home equity investment (HEI) borrowers through Point plan to use the funds to pay off education or student debt.
Paying off education debt is the fifth most commonly cited use of HEI funds after debt consolidation, home renovation, investment property purchases and investing in a business, according to the report.
