1 in 5 student loan borrowers at risk of struggling when payments resume, consumer watchdog says
CNBC Key Points
- The Consumer Financial Protection Bureau warns that 1 in 5 student loan borrowers have risk factors that could cause them to struggle when their bills resume.
- During the three-year-long pause on payments, many of those with education debt have increased their debt obligations and fallen behind on other payments.
Yuliya Taba | E+ | Getty Images
The Consumer Financial Protection Bureau is warning that roughly 1 in 5 student loan borrowers have financial risk factors that could cause them to struggle when their payments resume in the fall.
The bipartisan agreement to raise the federal debt ceiling signed into law earlier this month by President Joe Biden included a provision that officially terminates the more than three-year-long pause on federal student loan payments and potentially makes it harder for the U.S. Department of Education to extend it again. As a result, the 40 million Americans with student loans will likely have their next due date in September.
The consumer watchdog agency says that the transition may not go smoothly for many borrowers.
