North Carolina's billions in student loan debt
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More than 1.3 million borrowers in North Carolina now have to start coughing up federal student loan payments for the first time since 2020.
Why it matters: The pandemic pause gave more than 40 million U.S. borrowers a reprieve on making payments for three-plus years.
- Experts are warning of a messy return to debt repayment for borrowers, Axios' Kelly Tyko writes.
- Student loan debt will especially be tough on younger people, who typically have lower incomes.
State of play: More than a million North Carolinians together owe about $51 billion in student debt, as of June 30.
- That's on average over $38,000 per borrower.
Zoom in: Borrowers in North Carolina who are 35-49 years old owe the most as a group, with around $20 billion in debt.
- Those aged 62 and older owe the least collectively, with $2.2 billion.
What's next: The Department of Education says borrowers will get a bill at least 21 days before the due date, Axios' Arika Herron and Troy Smith write.
- 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.
- The Biden administration also created a yearlong "on-ramp period" during which borrowers won't be reported to the national credit rating agencies if they default on payments.
Be smart: Use this Axios explainer to figure out your student loan status.