The Blubber

The more student debt you have, the greater the odds you own a home — because higher debt tends to mean more education, which boosts earnings, per Bloomberg.


The resumption of federal student loan payments this fall marked the end of a year-long hiatus. President Biden chose not to extend the pandemic-related pause initiated in March 2020 by former President Donald Trump.

As of mid-November, a Department of Education report revealed that 40% of the 22 million borrowers with outstanding bills had not made a payment. This equates to approximately 9 million Americans currently not meeting their payment obligations. The reported figure excludes individuals still in school, recent graduates not yet facing payment deadlines, or those granted extensions due to loan servicing errors.

James Kvaal, Under Secretary of the Education Department, emphasized the need for support as borrowers navigate the return to repayment. While many have made their initial payments, others may require additional time or feel overwhelmed by their options.

Despite the official restart in October, interest resumed accruing on September 1, causing the outstanding balances of non-paying borrowers to continue growing. Monthly payments typically range between $200 and $299 per person, with some borrowers facing even higher amounts, according to recent Federal Reserve data.

In October, borrowers collectively resumed paying around $10 billion, as indicated by a separate analysis from JPMorgan.