Tens of millions of Americans with federal student loan debt have had a financial reprieve for more than three years as a pandemic-era repayment pause was extended multiple times since March 2020.
Now many face a new reality on Sunday, Oct. 1, when they are due to resume making payments, all while struggling with nagging inflation and rising interest rates.
More than 45 million borrowers together owe approximately $1.6 trillion, according to President Joe Biden’s administration, which tried to cancel up to $20,000 in student debt for tens of millions of eligible borrowers, only to have the Supreme Court kill the program in June.
You can’t kill what is already dead. I keep emergency funds around, enough that I could buy a brand new economy car at any time. Have a single credit card with a 5,000 dollar limit and charge a cup of coffee on it once a month to verify it still works.
Debt is evil.