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How a $38 Billion Student Loan Experiment Changed the Lives of an American Generation

‘Life-changing’ relief from monthly federal loan payments allowed many to pay down other debts and boost their credit scores during the pandemic.

Jennifer Nagle was able to knock out her entire $15,000 balance in private student loans with the absence of federal payments and a better-paying job.

Jennifer Nagle was able to knock out her entire $15,000 balance in private student loans with the absence of federal payments and a better-paying job.

Photographer: Emily Elconin/Bloomberg
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The pause on student-loan payments has been a financially transformative experience for many Americans, allowing them to pay down debt, improve their credit scores and save for the first time.

The forbearance period has been extended to Aug. 31, but those struggling under mountains of college debt fear they’ll slip right back into precarious financial positions once payments resume.