Coloradans owe more than $29 billion in student loan debt
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Nearly 800,000 Coloradans are feeling the pain of federal student loan payments that resumed this month for the first time in three years.
Why it matters: After the pandemic-era pause offered a welcomed break, experts are warning of a messy return to debt repayment for borrowers.
- Student loan debt will especially be tough on younger people, who typically have lower incomes.
By the numbers: Colorado residents owe $29.4 billion in student debt as of June 30, according to the latest data from the U.S. Department of Education.
- That's on average about $37,000, on par with the national average of $37,300, per the Education Data Initiative.
Zoom in: People in their mid-20s to mid-30s make up the largest share of Colorado residents with federal student loan debt, comprising more than one-third of borrowers.
- Yes, but: Slightly older Coloradans between 35 and 49 years old, owe the most as a group, with nearly $12 billion outstanding.
What's next: Due dates for the first payments vary, but the Department of Education says borrowers will receive a bill at least 21 days before the deadline.
- Borrowers can apply for the new federal SAVE Plan, an income-driven repayment plan that calculates monthly loan payments based on income and family size.
- On Oct. 1, the Biden administration also launched a yearlong "on-ramp period," during which borrowers won't be reported to credit bureaus for missing payments.
Be smart: Use this Axios explainer to figure out your student loan status.
- You can also calculate your repayment with Federal Student Aid's loan simulator.
📣 Tell us: How is the return of student loan payments impacting you? Are you spending less on groceries, putting off home projects?
- Email us at [email protected]. We might use your response in a future story.