Chart: Student loan debt by age group in Tennessee
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Federal student loan payments return this month for more than 40 million Americans as the pandemic pause of three-plus years expires.
Why it matters: Experts warn of a messy return to debt repayment for borrowers who collectively owe more than $1 trillion in student loans, Axios' Kelly Tyko writes.
- Tennesseans account for about $32.5 billion of that total.
Zoom in: About 889,000 people in Tennessee had federal student loan debt as of June 30, according to the U.S. Department of Education. On average, they owe $36,730 each.
- Most Tennessee borrowers are under 50, with the largest share of borrowers between ages 25-34.
- Borrowers ages 35-49 owe the largest portion of money, at $12.9 billion.
Catch up quick: In July, President Biden announced that some borrowers who have been paying for decades — including nearly 17,000 in Tennessee — would have their debt forgiven.
- Last week, the White House announced another wave of debt forgiveness that affected nearly 13,000 Tennesseans.
- But that still leaves about 860,000 Tennessee residents who must pay their loans in full.
Details: Due dates this month vary. The Department of Education says borrowers will get a bill, with a payment amount and due date, at least 21 days before payment is due.
- Interest on student loans resumed accruing on outstanding balances on Sept. 1 after Congress passed a law preventing further extensions of the payment pause.
- Unless borrowers refinanced during the pause, interest on their loans will accrue at the same rate as before the pandemic.
Be smart: If you're unsure about your loan status, check out this Axios explainer.
- Borrowers can also calculate their repayment with Federal Student Aid's loan simulator.
Plus: Borrowers can sign up for a new income-driven repayment plan, the SAVE plan, which the White House estimates will save the typical borrower about $1,000 per year.