“It’s really, really scary. We are going to be living on the brink,” one borrower said.

Tens of millions of Americans with federal student loan debt have had a financial reprieve for more than three years as a pandemic-era repayment pause was extended multiple times since March 2020.

Now many face a new reality on Sunday, Oct. 1, when they are due to resume making payments, all while struggling with nagging inflation and rising interest rates.

More than 45 million borrowers together owe approximately $1.6 trillion, according to President Joe Biden’s administration, which tried to cancel up to $20,000 in student debt for tens of millions of eligible borrowers, only to have the Supreme Court kill the program in June.

  • Bitrot@lemmy.sdf.orgEnglish
    191·
    1 year ago

    The inability to get out of them and enforcement mechanisms make “not paying” a bad plan if you’re staying in the country. IBR and riding it out until it’s forgiven seems better, even though it’s shitty.