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    One in three student loan borrowers risk default as delinquency rates soar

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    Nearly one in three federal student loan borrowers are at risk of defaulting on payments as early as July, as delinquency and default rates soar in the wake of pandemic-era repayment relief ending.About 5.8 million federal student loan borrowers were 90 days or more past due on their payments as of April 2025, according to a new analysis from TransUnion. That’s roughly 31% of borrowers with a payment due, up from 20.5% in February and nearly triple the 11.7% delinquency rate reported in February 2020, just before the pandemic began. The April figure represents the highest delinquency rate ever recorded.“With over 200 million credit-active consumers in the US, the 5.8 million affected borrowers make up only a small percentage,” Joshua Turnbull, senior vice-president and head of consumer lending at TransUnion told the Guardian.“However, for individuals who do not resolve their delinquencies, the personal consequences, particularly regarding access to credit, could be significant.”Borrowers fall into default once they are 270 days past due. Based on current trends, approximately 1.8 million borrowers could reach default status in July 2025, making them subject to wage garnishment and other collection actions by the US Department of Education. Another one million are expected to default in August, followed by two million more in September.This sharp rise in delinquency comes less than two months after the education department resumed collections on defaulted federal loans. The updated projections mark a steep increase from May, when the company estimated 1.2 million borrowers could default by July.The consequences for borrowers extend beyond collections. Those who become delinquent are seeing significant declines in their credit scores by an average of 60 points, according to the report.More than one in five borrowers who are now 90 or more days delinquent had previously been in “prime” or “super prime” credit tiers. After falling behind, fewer than one in 50 remain in those top tiers, with many dropping at least one full risk category.While only 0.3% of borrowers are currently in default, a relatively small amount of the population, the growing number of those in serious delinquency could signal continued trouble ahead. The slight increase from March to April, just 0.4 percentage points, suggests some borrowers may be trying to catch up, but the overall trend points to mounting financial stress among student loan borrowers. More

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      This Mother’s Day, lets talk about why birth rates are really declining | Katrina vanden Heuvel

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      Mother’s Day is here, and while Donald Trump may seem an unlikely celebrant of the occasion, his administration has recently floated several proposals to incentivize motherhood – or, more accurately, giving birth. There’s the $5,000 “baby bonus” for every American mother, free classes educating women on their menstrual cycles and a National Medal of Motherhood for moms who have at least six children. (Want to guess which regime also awarded such a medal?)As usual, the president has offered ridiculous solutions to a very real problem. He’s certainly right that every American should be able to afford to raise children, and that programs like social security depend on stable demographics. But of course, every other action he has taken to undermine gender equality would suggest that this sudden interest in the wellbeing of mothers is less than sincere. That’s exactly why progressives have an opening to break up what the Republican party believes to be its ideological monopoly on pro-family policies.The roots of the fertility crisis engage the bread-and-butter issues that have long been the domain of Democrats. US birthrates have hit a record low not because the nation has become “almost pathologically anti-child”, as JD Vance asserted to the New York Times. Instead, surveys have shown that would-be parents want to own a home, repay student debt and have money for childcare before starting a family. Yet the average age of a homebuyer has climbed to 56, almost double what it was 40 years ago. And 43% of young people currently carry student debt, compared with 28% in 1993. The problem isn’t lack of interest – it’s too much interest being paid on record high loans.But most of the Trump administration’s floated fixes are unoriginal swipes from the undemocratic leaders they admire. In 2017, Vladimir Putin declared a “Decade of Childhood in Russia”, an innocent name for a program that calls for everything from defending so-called family values to encouraging conjugal trysts during workplace coffee breaks to censoring “childfree propaganda”. Meanwhile, Viktor Orbán has dedicated 5% of Hungary’s GDP to pronatalist policies, which include nationalized IVF services and lifetime tax exemptions for mothers with three children. These men are carrying on an authoritarian tradition begun by the original strongman, Benito Mussolini, whose “Battle for Births” portended literal battles that decreased Europe’s population by 20 million people.That’s why those who really care about real solutions would be wise to start offering their own plans, and, in fact, some already have. What the Trump administration didn’t plagiarize from autocrats, they took from progressives, which is why “baby bonuses” sounds an awful lot like the “baby bonds” proposed in 2021 by Senators Tammy Baldwin and Cory Booker and Representative Ayanna Pressley. The legislation would put $1,000 in a savings account at birth for every American child. The Biden-era American Rescue Plan also almost doubled the child tax credit, which nearly halved the child poverty rate. Though making that expansion permanent received bipartisan support, it was ultimately killed by the centrist triangulating of Joe Manchin.Four years later, Democrats have the chance to embrace a genuinely progressive agenda that doubles as a pro-family platform. Bernie Sanders has long called for cancelling all student debt, Elizabeth Warren has campaigned for universal childcare, and Alexandria Ocasio-Cortez was among the first politicians on Capitol Hill to offer three months of paid parental leave to her entire staff. The Congressional Progressive caucus has also called for a whole raft of policies that would lower the cost of living, from expanding Medicaid to investing $250bn in affordable housing. They understand that real relief will come not from handing out medals but from having the mettle to fight for working families.Still, even if Democrats manage a progressive populist revival not seen since Franklin Delano Roosevelt, it probably wouldn’t be enough to lift birthrates. In social democracies like Finland and Sweden – which offer 13 months of paid parental leave and cover 90% of preschool costs, respectively – fertility remains below replacement levels.Does that indicate the problem may be more fundamental? One sociologist, Dr Karen Benjamin Guzzo, has attributed this dilemma to apprehension: “People really need to feel confident about the future.” But whether it’s 60% of young people feeling very worried about the climate crisis, or 80% of new mothers feeling lonely, or 90% of voters feeling that American politics is broken, the state of the world doesn’t seem too conducive to domestic bliss. The right’s response to this anxiety is embodied by Elon Musk, who keeps siring children with women he meets on X to create a “legion-level” brood “before the apocalypse”.To help avert said apocalypse, what should be on offer are authentically family-friendly policies that benefit parents and non-parents alike. In doing so, there’s a chance to persuade Americans that the next generation still might have a brighter future than the last. Or, at the very least, that progressives have a more compelling vision for American families than the one whose budget is about to take billions from children’s education, food and healthcare.It’s one thing to incentivize giving birth. Americans deserve leaders who will fight for those kids after they’re born.

      Katrina vanden Heuvel is editorial director and publisher of the Nation. She is a member of the Council on Foreign Relations and has contributed to the Washington Post, the New York Times and the Los Angeles Times More

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      Trump’s student loan changes leave borrowers facing soaring repayments

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      Many of the nearly 43 million Americans who have federal student loan debt are seeing their carefully budgeted monthly payments soar amid Donald Trump’s overhaul of education in the United States.In the last few weeks, the Trump administration closed applications for all income-driven repayment plans (even ones not blocked by courts) and limited those eligible for public service loan forgiveness (PSLF). That program forgives the loans of government and select nonprofit workers after completing 10 years of service and making 10 years of minimum payments.“The student loan system was broken when President Biden was responsible for it. All we’ve seen since President Trump has come in as an effort to provide fewer rights and fewer resources for working people that have student debt, making the cost of living go up,” said Mike Pierce, executive director of the Student Borrower Protection Center.“Things are worse now than they’ve ever been, and nothing is on the table that will make life better for people with student loans.”Jordan, a public high-school English teacher in Redding, California, and his wife, who also works in public education, have student loans totaling $200,000. The couple, who recently welcomed a second child, just bought a house to accommodate their growing family. An even higher student loan payment each month wasn’t a consideration when they took out a mortgage, he said.“We’re going from making $600 in payments – that’s what Save (saving on a valuable education) is supposed to do, which we can absorb to an extent. But if we go off of income-based payments, I don’t know what’s going to happen,” Jordan, 37, said.“Today I tried to calculate what’s going to happen, and the calculators don’t work on the webpage. I couldn’t even tell you real numbers if I wanted.”With a new mortgage and childcare exceeding $15,000 on a teacher’s salary, Jordan and his family are stretched thin.He said: “It’s been alarming, but I’ve tried to enter into zen mode. I’ll just move my money and I guess wait until they figure out how to garnish my wages, if I even have money. I don’t know. What am I supposed to do?”Aaron, a pharmacist in Ohio, started looking for a second job when Trump got elected in preparation for higher monthly payments.“I’m nervous about it. I basically knew on election night what was going to happen to the Save Plan. It was going to go away. I did a second pharmacist job filling in some [pro re nata] hours,” Aaron, 47, said. “I’m still looking for additional hours to try to pick up.”Aaron took out around $180,000 in loans to cover pharmacy school tuition and living expenses for him and his family. With the Save plan and PSLF, he expected to pay $700 a month and have his loan forgiven after 10 years since he works for the state. Without an income driven repayment plan as an option, he fears a possible monthly payment of $1,800 for the next 30 years on a standard extended repayment plan with no chance of forgiveness.“The more that you go to school, have an advanced degree, you earn more over your lifetime. You pay more in taxes. Not just income taxes, but property taxes, sales taxes, everything else. So it’s actually a pretty good deal to invest in somebody to go to school,” he said. “I don’t see [loan forgiveness] as a handout, which is what people try to say ‘well, you know, I didn’t go to school, so I shouldn’t pay for anything.’ Yeah, but if I told you about all the stuff that I shouldn’t be paying for, you could play that game all day.”Reina Chilton-Mayer is a homemaker and caregiver for her disabled teenage son. Despite her husband having a master’s degree and stable income for many years, the unstable rental market alongside the cost of caretaking has left them with few choices, she said. She and her husband’s combined $140,000 worth of student loans has left them so burdened that they are considering defaulting on their debt for the first time.“I hate defaulting on something. It could have career impacts for my husband,” Chilton-Mayer, 44, said. “If you wanted to change jobs, of course there are going to be financial background checks. So we’re not 100% on whether or not we’re going to do that, but at the end of the day, it just comes down to making ends meet every month.”Ebrahim Ghazali, the chief of pediatrics at a clinic in Springfield, Massachusetts, has just one year left of payments until the rest of his loans would be forgiven under PSLF. The recent changes to federal student loans have paused his payments and left him unsure about the future of his debt.“With these giant student loans, my payments were initially close to $2,000 a month. When I got on the Save plan, it brought it down to between $600 and $700 a month, which I can budget a lot better,” Ghazali, 41, said.But now, with the application websites down, he said he is “unable to progress towards forgiveness and with the application site down. I can’t restart them on a different repayment plan. I’m not even sure if my current employment is going to count towards repayment at this point.”As the potential shuttering of the department of education looms, Pierce noted that “the worst things that could happen are already happening right now, and we don’t need to wait for the education department to shuffle the deck chairs around on the Titanic”.“Borrowers have a right to make payments based on their income,” he said. “They have a right to have their debt canceled that they work in public service, and those rights have been shut down by President Trump.” More

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      Trump administration quietly shutters online form for student debt repayment

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      The Donald Trump administration has taken down the online application form for several popular student debt repayment plans, causing confusion among borrowers and likely creating complications for millions of Americans with outstanding loans.Those seeking payment plans are unable to access the applications for income-driven repayment plans (IDR), which cap what borrowers must pay each month at a percent of their earnings, as well as the online application to consolidate their loans on the US Department of Education website.The quiet removal came after a federal appeals court decision earlier this week that continued a pause on Joe Biden’s Save program, an income-driven plan for loan forgiveness that would have forgiven debts after as few as 10 years of payments.Biden’s Save program has been on hold since last summer after a group of Republican state attorneys general brought forward a lawsuit against the forgiveness features. As a result, about 8 million borrowers who enrolled in Save before it was halted currently have their loans in limbo as the litigation is ongoing.It is currently unclear how borrowers who were already enrolled in income-driven plans are supposed to submit their annual paperwork to certify their incomes. It is also uncertain when or if the payment plan applications will be back up on the website.The continued setbacks in the path towards student loan forgiveness has caused concern among those with debt, and loan forgiveness activists. Critics also point out that removing payment plan options was not a part of the previous litigation.There is also criticism towards the DoE’s decision to quietly remove the applications rather than announcing it, with the department opting instead to post a banner on StudentAid.gov.The Student Borrower Protection Center (SBPC), a non-profit dedicated to eliminating student debt in the US, released a statement in response to the sudden removal.skip past newsletter promotionafter newsletter promotion“Shutting down access to all income-based repayment plans is not what the 8th Circuit ordered—this was a choice by the Trump Administration and a cruel one that will inflict massive pain on millions of working families,” the statement says.It goes on to say: “President Trump campaigned on lower costs, but once again has chosen a path that will ensure the greatest possible harm to the monthly budgets of everyday working families.” More

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      Joe Biden will cancel $7.4bn in student debt for 277,000 borrowers

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      The Biden administration will cancel $7.4bn in student debt for 277,000 borrowers, the White House said on Friday, the latest in a series of debt cancellations.Joe Biden announced plans on Monday to ease student debt that would benefit at least 23 million Americans, addressing a key issue for young voters whose support he needs as he seeks re-election in November.Those plans include canceling up to $20,000 of accrued and capitalized interest for borrowers, regardless of income, which Biden’s administration estimates would eliminate the entirety of that interest for 23 million borrowers.The latest round of debt relief affects 277,000 Americans enrolled in the Save Plan, other borrowers enrolled in Income-Driven Repayment plans, and borrowers receiving Public Service Loan Forgiveness, the White House said in a statement.It follows an announcement in March that $6bn in student loans would be canceled for 78,000 borrowers.The administration said on Friday it had approved $153bn in student debt relief for 4.3 million Americans.Biden, a Democrat, last year pledged to find other avenues for tackling debt relief after the US supreme court in June blocked his broader plan to cancel $430bn in student loan debt.The campaign of the former president Donald Trump, Biden’s Republican challenger in the White House race, in March criticized the student loan cancellation as a bailout that was done “without a single act of Congress”.The issue remains high on the agenda of younger voters, many of whom have concerns about Biden’s foreign policy on the war in Gaza and fault him for not achieving greater debt forgiveness.Republicans have called Biden’s student loan forgiveness approach an overreach of his authority and an unfair benefit to college-educated borrowers while other borrowers received no such relief.Roughly half of federal student loan debt is held by people with a graduate degree, according to the Brookings Institution thinktank. An August 2023 report by the Department of Education said graduate students received the highest share – 47% – of federal student loan disbursements from 2021-22, even though they accounted for only 21% of all borrowers. More

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      Biden announces new plan to cancel student loans for 30m borrowers

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      Joe Biden announced plans to cancel student loans for 30 million borrowers on Monday, the administration’s latest push on addressing student debt before the presidential election.The plan primarily targets borrowers who have accrued a high level of interest on their debt and those who have been in repayment for at least 20 years. Borrowers who face extreme economic hardship could also see some relief.The White House said that parts of the plan could begin to take effect in the early fall, at the earliest. In addition to a waiting period to receive public comment, the administration is expecting legal challenges from Republicans that could stall the plan from going into effect.Biden touted the new plan in a speech Monday afternoon in Madison, Wisconsin, where he said “too many people feel the strain and stress” of student loans.“Today, too many Americans, especially young people, are saddled with unsustainable debts in exchange for a college degree,” Biden said. “It’s a drag on our local economy.“Now, thanks to what we’re doing, that debt is no longer holding you back.The bulk of borrowers impacted by the plan will be those who owe more than their original balance because of accumulated interest. Borrowers who make under $120,000 a year, or married borrowers who make under $240,000, will automatically receive cancellation for the amount their balance has grown because of interest, up to $20,000. This cancellation will be automatic, and the administration estimates it will impact more than 25 million borrowers.The plan also targets borrowers who have held their debt for nearly 20 years. Borrowers who started repayment on their undergraduate debt on or before 1 July 2005 or their graduate school debt on or before 1 July 2000 will see the rest of their loans forgiven. The White House estimates about 2.5 million borrowers would be affected by this.Borrowers who are facing economic hardship and are at high risk of defaulting on their loans because of economic hardship in their daily lives, for example having medical debt or child care costs, may see their debt automatically cancelled under the plan.The administration is also trying to automatically enroll borrowers who are qualified for various forgiveness programs, including the Save plan and the Public Service Loan Forgiveness plan, but have not signed up for them. The White House estimates 2 million borrowers who could see their loans forgiven have not signed up for the programs.If the plan is executed, it would bring the total number of borrowers who have seen debt relief under Biden to 30 million.Though he had promised to cancel student debt during his 2020 presidential campaign, Biden has been fighting an uphill battle to try to address student debt after the supreme court last year blocked his big plan to cancel some debt for at least 43 million borrowers, including $20,000 in cancellation for some borrowers.After the supreme court’s decision, the White House’s student debt strategy has been to specifically target groups of borrowers for relief, especially those who have held debt for multiple decades and students who attended predatory for-profit schools.The White House also launched the Save (Saving on A Valuable Education) plan, a revamped income-driven repayment plan that allows borrowers to be on track for forgiveness if they pay a set portion of their income every month.Biden on Wednesday noted that “tens of millions of people’s debt was literally about to get cancelled”.“Then some of my Republican friends, elected officials and special interests sued us, and the supreme court blocked us. But that didn’t stop us,” he said. “I mean it sincerely, we continue to find alternatives past student debt repayments that are not challengeable.” More

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      Is Biden’s student debt action enough to win back young voters angry over Gaza?

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      Maxwell Frost, the only gen Z member of Congress, was front and center when Joe Biden announced last week that he was canceling $1.2bn of student loan debt for more than 150,000 Americans.“President Biden knows that canceling student debt is an important issue for young people across our country,” said Frost, who has been a surrogate for Biden’s campaign. “The president’s actions on student debt are in stark contrast with Donald Trump, who spent his entire time in office sabotaging efforts to aid borrowers who are just trying to make ends meet.”Frost’s comments underline how much Biden wants young voters to know that he hasn’t given up on fixing student debt, even after the supreme court struck down his cancellation plan last summer.But like some of Biden’s other most progressive policies convincing young voters that he has a decent track record on the issues – not least the war in Gaza – that will drive them to the ballot box is proving challenging.“[Biden] coming to the table to talk about student debt forgiveness is a huge win ,” said Antonio Arellano, NextGen’s vice-president of communications.“In America, young voters right now are the largest eligible voting bloc in modern American history, surpassing baby boomers. And they’re being very clear about where they stand,” Arellano said. “So it would be in the best interest of the administration to listen to the young people that are simply demanding humanitarian priorities and protections for folks that are just in the crosshairs of this greater war.”When contrasted against Trump, Biden’s student loan policies appear decidedly progressive. Biden’s federal student loan program would have seen 43 million borrowers receive some relief, including up to $20,000 off loans for some borrowers. But the supreme court’s conservative majority, including the three justices appointed by Trump, struck down the plan last June.The ruling was a blow to millions of borrowers across the country. An estimated 45 million Americans hold a total of $1.6tn in student loan debt.“The fight is not over,” Biden vowed after the decision, noting that the “hypocrisy of Republican elected officials is stunning”.Since then, Biden has kicked off several loan forgiveness measures along with piecemeal cancellations worth up to $138bn for 3.9 million borrowers. The most recent cancellation was targeted toward those who had borrowed $12,000 or less and have had their debt for at least 10 years. Many of these borrowers probably have much higher debts because of accumulated interest over the years.The White House has been instituting “huge fixes to the broken student debt system. It’s not debt cancellation … but these are drastic changes”, said Natalia Abrams, president and founder of the Student Debt Crisis Center, a student borrower advocacy group.Biden’s continued poor polling on student debt may be in part down to timing. Young voters may not be seeing the immediate relief themselves. Even if young low- and middle-income are on Biden’s new Save plan, which adjusts monthly payments based on a borrowers monthly income, those on the plan won’t see forgiveness after at least 20 years.“They haven’t been borrowing for 10 years,” Abrams said. “I can see how young people, because they’re new to the lending system, feel left out … but [student debt] is impacting people of all ages.”Student debt remains one of the biggest issues motivating young voters. The national youth-focused nonpartisan voter registration and education program NextGen says emails and call-outs about student debt get the most engagement on their site. But young voters see Biden’s policies on the issue in a wider context of other issues, particularly the Israel-Gaza war.When the White House announced where Biden would be delivering a speech on his most recent student debt cancellation, it waited a day before to disclose the location, likely to avoid another one of the many pro-Palestinian protests that have interrupted his events for months.“Doing a few good things here like canceling student debt and continuing on those promises [Biden] made won’t take away from a lot of bad things we’re doing elsewhere,” said Usamah Andrabi, communications director for the progressive political action committee Justice Democrats.skip past newsletter promotionafter newsletter promotion“Not to take away from the student debt crisis – that’s incredibly important. But canceling student debt does not make people forget that you are aiding and abetting the ethnic cleansing and murder of nearly 30,000 Palestinian people and supporting a far-right extremist government in Israel that is doing it,” Andrabi said.Andrabi said addressing one outstanding issue while ignoring another is “almost patronizing” to young voters.“To think that they would all of a sudden forget that millions of them have been in the streets for months demanding a ceasefire is insufficient. It hasn’t cleaned the slate for what has happened to the Palestinian people,” Andrabi said.Many of the issues important to young voters – including student debt, climate justice, reproductive justice and the violence in Gaza – are “inseparable”, Andrabi argues. Financially contributing to the Israeli military while they drop bombs and rockets on the Gaza strip produce carbon emissions which heat the planet.“We’re also seeing a reproductive health crisis in Gaza,” Andrabi said, referencing the tens of thousands of pregnancies in Gaza classified as high-risk due to the violence.“It’s not that one issue is more important than the other – I think every voter has their own calculus. But to act like this is a completely separate issue for a group of voters would be incorrect, especially as we’re seeing so many of the same problems happen to the Palestinian people.”Strategists say Biden is likely relying on young voters supporting him as the candidate against Trump, rather than for his own policies as president. That’s why some Democrats in Michigan, like the US congresswoman Rashida Tlaib, are pushing voters to protest his stance on the Israel-Gaza war by marking themselves as “uncommitted” in the upcoming primary.“There’s a lot of frustration … and the administration not only needs to hear those concerns, but they need to feel them,” said Michael Starr Hopkins, a Democratic strategist. “One of the biggest mistakes they’ve made is not acknowledging people’s concern. They internalize them, but they don’t show externally that they’re taking it into consideration.”Hopkins noted that Biden’s strength can be conveying empathy. “He is always better when he comes out and acknowledges people’s pain and suffering.” More

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      Biden cancels additional $9bn in student loan debt

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      President Joe Biden has announced that an additional 125,000 people have been approved of student debt relief in a total of $9bn.Biden’s latest approval brings the total approved debt cancellation under his administration to $127bn for nearly 3.6 million Americans, the White House said in a statement.The new approvals include $5.2bn in additional debt relief for 53,000 borrowers under Public Service Loan Forgiveness programs, nearly $2.8bn in new debt relief for nearly 51,000 borrowers through fixes to income-driven repayment, as well as $1.2bn for nearly 22,000 borrowers who have a total or permanent disability.In an address on Wednesday, Biden said that his administration’s efforts to relieve student debt is “not done yet”, adding: “My administration is doing everything we can to deliver student debt relief as many as we can, as fast as we can.”“While a college degree is still the ticket toward a better life, that ticket has become excessively expensive. Americans who are saddled with unsustainable debt in exchange for a college degree has become norm,” he said.Biden went on to criticize the conservative-majority supreme court’s 6-3 decision earlier this year that ruled against his administration’s $430bn student debt forgiveness plan for 40 million borrowers.“Republican-elected officials and special interests stepped up and sued us and the supreme court sided with them, snatching from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives,” he said of the decision.The education secretary, Miguel Cardona, hailed Biden’s decision on Wednesday, saying: “The Biden-Harris administration’s laser-like focus on reducing red tape, addressing past administrative failures, and putting borrowers first have now resulted in a historic $127bn in debt relief approved for nearly 3.6 million borrowers.”“Today’s announcement builds on everything our administration has already done to protect students from unaffordable debt, make repayment more affordable, and ensure that investments in higher education pay off for students and working families,” he added.Following the supreme court’s ruling earlier this year, the Biden administration launched Saving on a Valuable Education (Save) plan, which will go into full effect next July and increases the income exception from 150% to 225% of the poverty line.It also intends to reduce payments on undergraduate loans in half and ensure that borrowers “never see their balance grow as long as they keep up with their required payments”, the education department said. More

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      ‘Totally devastating’: borrowers on the start of student loan repayment

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      Millions of Americans over the last three years experienced what it was like to live without student debt. For many, that meant hundreds of dollars a month that went toward life’s other expenses – rent, buying or maintaining a home, supporting family. The relief was also coupled with hope: Joe Biden announced in August 2022 a plan to cancel $10,000 in loans for low- and middle-income borrowers.But now, the reprieve for borrowers is coming to an end. Republicans forced an end to the pause in student debt repayments during the debt ceiling debate and student loans payments will begin again in October. In a second blow, the supreme court struck down Biden’s forgiveness plan earlier this summer.The impact is broad. About 12% of the US population has student loans, over 43 million Americans hold a collective $1.7tn in debt. The youngest borrowers have just graduated from college and some of the oldest have retired with student loans. Many parents who took out loans to pay for their children’s education are also still burdened by debt.The Guardian asked US student loan borrowers what forbearance meant for them. Their answers give a glimpse into the impact that student debt has beyond the numbers.‘We were able to afford our first home’Homeownership is the primary way Americans build their wealth. For many with student debt, buying a home can feel impossible. A poll from the National Association of Realtors from 2021 found that 60% of millennials who don’t own a home pointed to student debt as the main reason.But the payment pause, tied with low interest rates, allowed some student borrowers to put down a mortgage for their first home.Lauren Segarra, 41, a speech-language pathologist in Atlanta, Georgia, said the payment pause enabled her family to buy a home.“That extra cash put us over the threshold of being able to afford our first home,” Segarra said, adding that the pause – along with being in the Public Service Loan Forgiveness (PSLF) program – allowed her and her husband to save about $12,000 in cash. “We were able to responsibly put a down payment on a home without wiping out our savings.”The real estate company Zillow estimated that those with student loans in 29 out of the 50 largest housing markets in the US saved the equivalent of a 5% down payment on an entry-level home in their market, allowing people like Segarra to become homeowners.But the narrow window for affordable homeownership seems to have passed: Zillow reported that the principal and interest on a new home have now doubled since March 2020 because of record-high interest rates and soaring home prices. Now that payments are set to restart, homeownership for many will continue to be out of reach.‘I paid off $7,000 in medical debt’One out of 13 student loan borrowers are currently behind on other debt, a higher proportion than before the pandemic, the Consumer Financial Protection Bureau (CFPB) reported in June.Credit card debt has soared during the pandemic, especially over the last year as inflation reached record highs. The total amount of credit card debt in the US hit $1tn, the Federal Reserve Bank of New York reported in August, a record high. In a recent survey, 46% of those with credit card debt say they are still trying to pay off an emergency expense, including car or home repairs or medical bills. About a quarter said that everyday expenses, including groceries and childcare, have caused their bills to rack up.And this credit card debt is on top of other medical debt, which totaled $195bn in 2019. According to Kaiser Family Foundation Health News, one in 10 American adults owe more than $10,000 in medical debt.Lydia Gay, 36, a costume maker and tailor based in New York, said the student loan payment pause helped her pay off her medical debt.“It allowed me to save and pay off over $7,000 in debt from medical expenses, mostly from a couple of years of monthly insurance premiums,” she said. The Writers Guild of America (WGA) and Screen Actors Guild (Sag) strikes in Hollywood have meant she can only find part-time work, but “I have still been able to pay for rent and basics because I don’t have $400 a month coming out for student loans.”Gay said she is concerned about what the end of the pause will mean for her finances now, especially as there continues to be less work in her industry.“I’m extremely worried about being able to pay rent, bills and basics, along with student loans,” Gay said. “The stress and worry have even been affecting my sleep and mental health.”‘It allowed me to save money’A majority of Americans – as many as 61%, according to a recent survey – live paycheck to paycheck. More than one in five Americans don’t have emergency savings.For some student loan borrowers, forbearance empowered them to build up savings for the first time.“The pause has been a massive relief and allowed me to save more money,” said Brooke McGeorge, 26, a non-profit program assistant based in San Diego. “Knowing that loan repayment is kicking in again with no follow-through on promises for debt relief feels like a punch to the gut.”With forbearance ending, borrowers say they are worried about the strain that it will have on their finances once again.Ben Birkinbine, 41, an assistant professor based in Oshkosh, Wisconsin, had a daughter in late 2019, right before the pandemic began. During forbearance, his family moved back to Wisconsin to be closer to family. While the pause allowed him and his family to buy a home, he took a pay cut and has less job security.“Our budget is very tight and will be for at least another two years,” Birkinbine said, noting that childcare costs, in particular, have been rising. “Saving will be very difficult, and we will likely need to cut into existing savings to meet payments.”As much as the payment pause was a welcomed respite, the return to payments for many borrowers feels a bit like betrayal, especially when $10,000 in forgiveness seemed to be a reality just a year ago.McGeorge, echoing the frustration of fellow borrowers, said she is frustrated that the supreme court blocked Biden’s forgiveness plan, which many had hoped would help ease repayments starting.“It’s totally devastating,” she said. “Americans should have a chance to be optimistic about the future, but things that used to be so basic like affording good food and buying a home, are feeling more and more like a pipe dream.” More