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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.
Fewer loans means less consumer spending, and less consumer spending means lower inflation.
More than 800,000 U.S. borrowers should see relief.
For one thing: the first year after payments restart, borrowers who fall behind won’t be penalized.
Some of those who owe the least could be among the most affected.
It’s still a relatively rare benefit: About 8% of employers in the country offer help with student loan debt.
A debt ceiling deal has been made, and student loan borrowers will have to start making payments again later this summer.
“I wanted to have something that I could easily add on to my current workload,” says chemist April Oliver of Bozeman, Montana.
Discretionary spending may decline as people add those payments back into their budgets.
U.S. borrowers hold a collective $1.8 trillion in both public and private student loans.
