Student loan repayments are beginning again in October, after being on hold since March 2020. Almost all stimulus packages announced during the COVID-19 pandemic have since wound down, and even the Fed – which slashed rates to zero in March 2020 – has since hiked its benchmark rate to the highest in over two decades.
The student loan moratorium was one key stimulus that was extended multiple times - first by Donald Trump, and then by his successor, President Joe Biden. The latter’s bid to forgive student loans was struck down by the Supreme Court - and even as the Biden administration is mulling alternative relief mechanisms for borrowers, for now, the repayments are set to begin. That's estimated to leave a $100 billion hole in the pockets of borrowers in the coming year, according to a Wall Street Journal report.
