Student loan borrowers will face a serious squeeze this spring when a federal moratorium on their debt payments expires amid surging inflation.
Tens of millions of Americans are bracing to resume paying their student loans for the first time since March 2020, after the fastest annual rise in consumer prices since 1982.
The costs of food, housing and other essential goods are rising while millions of Americans feel the crushing weight of student debt.
“Right now, people’s budgets are already being squeezed by rising food and heating costs. To suddenly hit people with a student loan payment averaging $400 a month would be a severe double-whammy,” said Thomas Gokey, an organizer with the Debt Collective.
Consumer prices increased 7 percent in December from the same month the previous year, which marks the fastest annual increase in prices in almost 40 years. High inflation is a huge political challenge for President Biden and Democrats going into the midterm elections, and advocates have warned that the lack of action to forgive student loan debt will also follow them on the trail. (Read more from “Rising Inflation Adds Pain to Student Loan Debt” HERE)
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