Student Loan Debt Sees Largest Quarterly Drop on Record Amid Forgiveness Programs and Repayment Pause
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Student loan debt fell by a record $27.8 billion in Q3 2022, the largest drop since the Fed began tracking in 2006.
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Debt forgiveness for certain federal loan borrowers and people repaying loans before required payments resumed in October contributed to the decline.
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Total student loan debt remains enormous at $1.7 trillion.
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More federal loan forgiveness may happen as the Biden administration works on a new program.
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Meanwhile, many younger borrowers feel financially squeezed by loan payments amid rising costs of living.