Understanding the Impact of Student Loan Payment Restart on the Economy

As the federal student loan payment pause ends, an estimated 44 million borrowers in the U.S. are expected to resume payments, with the total student loan debt balance surpassing $1.77 trillion. The average education debt for bachelor's degree students is $29,100, and under President Biden's plan, nearly 20 million borrowers could have their debts forgiven. However, the Supreme Court ruled against the $400 billion forgiveness plan. Disparities in student debt owed exist based on race and gender, with Black Americans and women having higher average debt levels. The COVID-19 relief measures reduced the share of borrowers behind on payments, but those with less education and attending private for-profit institutions were more likely to be behind.