October 9, 2023
Student Loan Payments Have Resumed, but the Fight for Cancellation Isn’t Over
By Peter Lucas
With Biden’s plan blocked by SCOTUS, borrowers find themselves closer to reaching $2 trillion of student debt. Now more than ever, we need to end this crisis.
SHANNA HAYES and SABRINA CALAZANS
(Kent Nishimura / Getty)
Earlier this summer, when the Supreme Court struck down President Biden’s plan to cancel student debt, millions of Americans’ hopes were dashed. Close to 20 million borrowers would have received full cancellation while others would have seen a significant reduction in their balances.
Instead, after three years of paused payments during the Covid-19 pandemic, student loan borrowers began receiving their bills this month. With another expense being added to their plate, many borrowers are concerned that student loans—coupled with the rising cost of living and inflation—will compromise their chances at a decent life. “It took me eight years from graduating to get a job that allowed me to feel financially stable,” said Joseph Cruz, a borrower from Oregon, “and 10 months into that job, I am no longer feeling as stable.”
With borrowers owing over $1.7 trillion in debt, these stories are far too common. “After starting graduate school this semester, I am running low on savings. The price of gas and inflation are also tightening my budget, plus I just learned that I will have to move in December, which will be a lot of money in terms of applications and deposits,” said Miranda Lopez, a student loan borrower in Arizona. “Payments will be taking money that I would have been putting into savings.”
