You'll Want to Read This Before You Start Repaying Your Student Loans
It was nice that student loan borrowers got a break from paying back those debts for several years -- even if the reason why Washington put them on hold was far from nice. But that reprieve is coming to an end.
More than 40 million U.S. borrowers will have to start paying back their student loans in late August. And that means that millions of Americans risk seeing their finances upended.
Compounding the problem is the fact that student loan payments are resuming at a time when inflation is still relatively high. Thankfully, it has cooled substantially since June 2022, when the Consumer Price Index peaked with a year-over-year increase of 9.1%. As of May 2023, it was down to a 4% increase. But things like groceries and utilities are still noticeably more expensive than what many consumers were used to. Throw student loan payments back into the budget mix after three years, and it's conceivable that a lot of people might end up with new revolving debt later this year as their shaky finances leave them charging other expenses on credit cards.
Source Fool.com
