How the return of student loan payments is affecting Coloradans
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Many Coloradans are already having to make major sacrifices as student loan payments resume this month following a three-year pandemic pause.
Driving the news: Centennial State residents collectively owe $29.4 billion in student debt as of June 30, according to the latest data from the U.S. Department of Education.
- We asked Axios Denver readers last week to tell us how they have been impacted by the return of repayments.
Why it matters: The responses we received offer insight into how difficult adding another bill back into the budget can be for many people who call this state home, especially as stubbornly high inflation persists.
What they're saying: For most, paying outstanding debt means significantly cutting back on spending.
- "We moved our two toddlers to a more affordable preschool for this year in anticipation of the change. And we are planning to cut back on travel. Essentially any savings or travel money will be gone," Michelle C. tells us.
- Local pharmacist Elizabeth B. says she "picked up a second job" and is putting off home projects, vacations and eating out to help "squeeze an extra $1,000" from her monthly budget.
- Talia R., who graduated in May, recently moved back home to help save money before student loan payments start next spring.
Of note: Even some Coloradans who have no student debt are being affected by the payback program. One reader told us they lost their psychotherapist after she took a job with a public agency to receive partial student loan forgiveness.
The other side: Some Coloradans expressed frustration that the general public will ultimately foot the bill to make President Joe Biden's student debt relief programs possible.
- "My responsibly and hard-earned dollars are bailing out these people," Douglas C. says.
- "The student loan payback is only affecting me on our taxes. I couldn't afford a student loan when I was younger, so I didn't get one. The prospect of having to pay back other people's loans really angers me for that reason," Lorrie F. tells us.
What we're watching: Some retailers have expressed concerns that tighter budgets for millions of borrowers will result in less consumer spending.
Yes, but: The broader picture still points to a strong American consumer, and some experts say fears of a significant impact on overall household spending are overblown, Axios' Hope King writes.