Around 40 million federal student loan borrowers will resume repayments soon as the US government reaches a debt ceiling deal. The 99-page-long legislative package would allow the federal government to borrow more money to operate while also avoiding a default on its old debts. The pause on student loan payments has been extended nine times under both Trump and Biden administrations, but this will be the last one after the deal explicitly prohibits the Biden administration from doing it again. The pause will end 60 days after June 30, meaning borrowers will need to start repaying loans near the end of August, at which point interest will also start accruing again.
Tag: Economic Depression
An economic depression is a period of sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.