Many borrowers need to reorganize their budgets. Disruptions in the loan servicing industry haven’t helped.
According to PitchBook, there’s been nearly $1.2 billion invested in student loan management startups in the past year.
Obligations resuming after three years could be a rude awakening for some. But by itself, it’s not likely to start a recession, experts say.
Student loan payments will resume this fall, but a new study from TransUnion shows that many people have taken on new debt in the meantime.
Now, agencies and Congress need to figure out how to implement the thing.
Discretionary spending may decline as people add those payments back into their budgets.
The Biden administration says there are more than 40 million people with outstanding student loan debt.