Millions of Borrowers Brace for Student Loan Repayment as Pause Ends
In a significant shift that will impact the finances of millions, the pause on federal student loan repayments is officially coming to an end. Originally put in place by President Trump in March 2020 as a response to the pandemic, this pause is set to expire on May 5. The resumption of loan collections could affect over 5 million borrowers currently in default, with projections indicating that this number might nearly double in the upcoming months.
The end of this reprieve marks a return to the pre-pandemic norm, where borrowers failing to make payments may face severe financial consequences. These include potential wage garnishments and a negative impact on credit scores, further complicating their financial situations.
As borrowers prepare for the financial adjustments required to accommodate these renewed obligations, NPR is seeking insights from those affected. If the restart of loan repayments is prompting you to reevaluate your budget or alter your financial plans, NPR invites you to share your experience.
Your stories are invaluable in helping us capture the real-world impact of these changes. We may reach out for further details or to inquire about the possibility of an interview.