Federal student loan accounts have effectively been frozen since March 2020. An increase in borrowing could mean that these student loan borrowers felt more comfortable making bigger purchases or buying a home or car while their student loans were frozen. But now, the extra debt could put some borrowers at risk of struggling to afford their student loan payments when they resume. More student loan borrowers are currently behind on other kinds of bills than they were before the Covid-19 pandemic, according to a recent study by the Consumer Financial Protection Bureau. States had been barred by Congress from winnowing their Medicaid rolls since the Covid-19 pandemic began.

Source: CNN July 26, 2023 19:41 UTC