3.9.21
In March of last year, Congress passed the CARES Act which as a result suspended federal student loan payments. Data from Experian shows that since the onset of the pandemic, student debt growth has grown by 12%. Experian found that new student loan originations saw little growth in 2020. Yet, data shows borrowers are taking out more loans on top of the ones they already have outstanding, leading to record high balances. Subsequently, pausing of payments has caused delinquency rates to drop significantly. With federal loan payments now permitted to be paused until October 2021, market observers are monitoring for potential student loan relief in the coming months.