What Happens When Student Loan Payments Resume?

With an increased monthly debt burden, borrowers could cut discretionary spending, causing economic turmoil. On the bright side, alternative ways to pay for college are being considered.

A young woman covers her eyes.
(Image credit: Getty Images)

As October draws closer, millions of Americans are preparing for a stark reality they haven’t faced in over three years: the restart of federal student loan payments.

The pandemic-induced payment pause that began in March 2020 was a critical relief during a time of widespread economic instability. However, its cessation could have significant implications for borrowers and the economy.

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Daniel Rubin
Founder & Chief Executive Officer, YELO Funding

Daniel Rubin is the founder and CEO of YELO Funding. He has 25 years of principal investing, investment banking, restructuring and operational experience, including roles as co-founding partner of YAD Capital, COO and CFO at Halpern Real Estate Ventures, investment banker at Lehman Brothers and turnaround consultant at Deloitte. Dan has invested in and/or advised on approximately $5 billion of corporate finance transactions.