The recent resumption of student loan payments after the Covid-era pause has led to an alarming increase in past due bills, with 9.7 million borrowers falling behind on their repayments according to a new estimate by the Federal Reserve Bank of New York. This figure is expected to surpass pre-pandemic levels as more delinquencies are reported and impact credit scores significantly. The Biden administration had initially offered a 12-month “on-ramp” period for borrowers, providing temporary relief from payment consequences during the pause. However, this reprieve ended on September 30th, 2024, leading to an increase in delinquent debt which now stands at over $250 billion and a delinquency rate of 15.6%. The Federal Reserve’s report warns that new student loan delinquencies can cause borrowers’ credit scores to drop by more than 150 points, highlighting the potential long-term consequences for those struggling with repayments. This situation underscores the need for comprehensive financial planning and support systems for students and graduates dealing with mounting debt burdens post-pandemic.
[Original Article](https://www.nbcnews.com/business/personal-finance/9-million-student-loan-borrowers-due-bills-restarted-fed-estimates-rcna198213) #over #million [Visit GhostAI](https://ghostai.pro/)
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