After a three and a half year pause, federal student loans started accruing interest again on Sept. 1 for millions of borrowers. As student debt is the second biggest consumer debt category, pausing student loan repayments had a major impact on many borrowers’ financial stability, raising concerns that making monthly repayments again may be difficult.
According to Betsy Mayotte, founder of the Institute of Student Loan Advisors, borrowers may struggle to fit that payment back into their budgets for a variety of reasons.
“The economy is different than it was three and a half years ago,” she said.
She expects many student debt holders to have to readjust finances after years of taking a break from paying off their loans. To discuss what borrowers should know as payments begin again, Mayotte spoke with PBS NewsHour digital anchor Nicole Ellis.
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