Student Loan Restart Causing Financial Stress for Many Borrowers

The Census Bureau found that 41.2% of adults reported difficulties paying household expenses after student loan payments restarted. This suggests the loan restart is causing financial stress.

Surveys before the restart predicted troubles, with some borrowers unsure how they'd manage repayment and others taking on more fixed expenses like cars.

The New York Fed estimated a 0.1% decline in spending due to the restart, a minimal impact. But complications with enrollment in relief programs could worsen the impact.

Parent Plus loans are a pain point, with unforgiving terms and thousands owed monthly.

Those without degrees who still owe loans are especially vulnerable financially. Their struggles could grow in coming months.