Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

By CORA LEWIS
Associated Press

NEW YORK (AP) — Millions of Americans must start repaying their federal student loans again in October, with monthly payments averaging hundreds of dollars a month. To get ready, borrowers are cutting expenses, taking on additional work, and looking for options to reduce their monthly payments. The Supreme Court in July rejected a plan by President Joe Biden’s administration to wipe away $400 billion in student loan debt. It’s not yet clear how millions of people suddenly having less discretionary income might affect the economy. On an earnings call last month, the chief financial officer of Target said student loan payments restarting will put additional pressure on already-strained budgets.