Federal student loan borrowers who have missed payments or entered default may start to see negative impacts on their finances as the new year begins.
Why It Matters
Government-mandated pauses on payments and collections have allowed those who are in default to avoid some of the harsher consequences of missed student loan payments. As the new year begins and these pauses end, borrowers could find themselves grappling with negative marks on their credit, among other financial hardships.
The effects of debt on overall economic well-being of Americans play a role in how they may approach student loan repayment. Findings from the Education Data Initiative say that
Student Loan Update as Borrowers Face New Consequences This Month
