HOUSTONSeptember 1, after a three-and-a-half-year pause. The Consumer Financial Protection Bureau expects one in five borrowers to struggle to make payments amid high inflation.The debt deal created some genuine movement on the issue of President Biden's bid to forgive $400 billion in student loans - the payments on which have been suspended since the pandemic, but as a part of the debt deal, must begin again.
Many borrowers like Jacque Abron say they won't be able to afford to resume their federal student loan payments. "We’re going to see a mass default. I tell everyone to bulletproof themselves," said Alan Collinge, founder of the advocacy groupCollinge says he expects defaults to be much higher at 70%. Student Loan Justice is calling for legislators to restore the right to discharge federal student loans in bankruptcy court.