Student loan relief ending for 864,000 Michiganders
At least 864,000 Michiganders are now bracing for student loan payments to resume in October.
Why it matters: Younger Americans and those with lower incomes tend to be saddled with student loan debt.
- The resumption of payments will be painful and could translate to a broader slowdown, Axios' Emily Peck reports, with about $70 billion expected to be pulled out of the economy annually.
Catch up fast: President Biden's debt forgiveness proposal would have wiped out up to $10,000 for borrowers under a certain income cap and up to $20,000 for Pell Grant recipients, but it was rejected by the Supreme Court on June 30.
- It would have cost the feds around $400 billion over the next decade.
What they're saying: "Having that loan forgiveness program is incredibly helpful. It helps people like myself who are low income to stay out of that rut, it gets us out of that cycle," John Welton, 40, who attends Grand Rapids Community College, told the Free Press after the Supreme Court ruling.
By the numbers: Michigan borrowers owe more than $51 billion in federal student loans, with the average borrower owing about $36,100.
- More than 1.4 million Michiganders have some type of student loan debt.
- Nationally, states where the average borrower has the highest remaining balance — ranging from nearly $40,000 to nearly $55,000 — are Florida, Virginia, Georgia, Maryland and Washington, D.C., per the data.
Zoom out: Biden is looking to other avenues to give borrowers a break, though the effects will be noticeably smaller, at least for individual borrowers, Axios' Caitlin Owens reports.
- He also announced a one-year on-ramp for loan repayments, during which borrowers who miss payments won't be reported to credit bureaus, placed in default or referred to debt collection agencies.
What's next: For now, student loans begin accruing interest again starting Sept. 1.
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