The Unusual Impact of Student Loan Repayments on a Specific Group

As student loan repayments resume, a former Fed economist warns that an overlooked group of borrowers, specifically millennials who left cities during the pandemic to buy homes in the suburbs, will face financial challenges. These higher-income borrowers, making between $100,000 and $225,000, will not be eligible for any student loan relief, despite having new financial burdens such as mortgage and car payments. The economist predicts a surge in household bankruptcies and warns that student loan payments will further hinder younger borrowers from affording homes in the already unaffordable housing market.