Student loan payments resumed this fall, ending more than three years of pandemic-era payment relief for borrowers. This adds further uncertainty to consumer credit markets already feeling the impacts of inflation and higher interest rates. The change has many concerned that borrowers will struggle to make payments — especially since the majority of student loan consumers took on new debt obligations during the forbearance period.1
A new research paper from TransUnion and Boston Consulting Group (BCG) explores the impact that resuming federal student loan payments will have on consumer credit markets and provides lenders with guidance to mitigate the increased risk.
1 BCG and TransUnion Consumer Survey, July 2023
