A close-up of hands holding a student loan document and typing into a calculator.

Article

CFI in Focus: Return to Student Loan Repayment and Adjusting to Change

Jacob Goldsmith

Research Analyst, Consumer Finance Institute

12 Aug ’24

CFI in Focus – After three and a half years of paused payments on federal student loans, payments restarted in October 2023. Many borrowers experienced significant adjustments to their required debt payments, not only because of the payments resumption but also because of changes to repayment plans and the strained servicing environment.

This CFI in Focus considers the effects of the payments resumption and accompanying administrative changes on household financial health and balance sheets through the lens of Consumer Finance Institute consumer surveys. We highlight several findings from a four-report series on the student loan payments resumption that we published in early 2024 and that considered borrowers’ expectations and experiences resuming payments and navigating new repayment options.

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The Effect of Student Loan Payment Burdens and Nonfinancial Frictions on Borrower Outcomes

Tomás E. Monarrez &
Lesley J. Turner

Revised: October 2024

WP 24-08/R – Rising student loan debt and concerns over unaffordable payments provide rationale for “income-driven repayment” (IDR) plans, which aim to protect borrowers from default and resulting financial consequences by linking payments to income.

Education Finance

Report

Back in the Loan Game: What Can We Expect from the Student Loan Payment Resumption?

06 Nov ’23

The student loan repayment landscape has evolved rapidly, with many borrowers resuming payments for the first time since the payment pause began in April 2020. Here we analyze current publicly available payments data and share insights from a July 2023 survey by the Consumer Finance Institute (CFI).