End of Student Loan Payment Freeze May Cut Spending Slightly But Put Vulnerable Borrowers at Risk

The end of the student loan payment freeze will likely only reduce spending by 0.1% according to the New York Fed.

Borrowers report they'll cut back spending by $56 per month on average when payments resume.

Nearly 23% of borrowers say they are likely to miss a student loan payment when required again.

Women and low-income borrowers are most at risk of missing payments.

Income-driven repayment plans could help protect borrowers, but many are struggling to enroll before payments restart.