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Student Loan Borrowers Paid Off Billions Before Interest Restart
Payments to the Department of Education surged to pre-pandemic levels in August, according to a new report from economists at Goldman Sachs.
Photographer: Michael Okoniewski/Bloomberg
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Student loan borrowers paid down billions of dollars in debt as they prepared for the end of a federal freeze on payments and interest.
The US Department of Education saw a surge in payments last month as borrowers with savings started wiping out their balances, according to a new report by Goldman Sachs. After a three-year pause, interest began accruing again on federal student loans Friday, and borrowers need to start making payments in October.