Newsweek - Federal student loan borrowers who have missed payments or entered default may start to see negative impacts on their finances as the new year begins. Government-mandated pauses on payments and collections have allowed those who are in default to avoid some of the harsher consequences of missed student loan payments. As the new year begins and these pauses end, borrowers could find themselves grappling with negative marks on their credit, among other financial hardships.
The effects of debt on overall economic well-being of Americans play a role in how they may approach student loan repayment. Findings from the Education Data Initiative say that "51% of renting student borrowers have not bought a home due to student loan debt; among homeowners, 29% delayed purchasing a home due to student debt." Other factors noted in this study found that Americans lowered their expectations when launching businesses or purchasing vehicles due to student loan debt.
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