Borrowers anticipate lifestyle changes and struggle with repayment expectations

Many borrowers, such as Meghan and Marcus, express shock and anxiety about having to resume student loan payments. The repayment requirements, combined with the absence of debt forgiveness, mean that borrowers may have to adjust their lifestyle and make significant cutbacks. This includes reducing spending on non-essential items, limiting social activities, and even cutting back on basic necessities. Economists warn that these cutbacks will have a negative impact on the US economy, particularly as people exhaust their savings and shift their spending towards essential items. Additionally, borrowers who were already struggling to make payments prior to the pandemic may face further challenges and a sense of financial disparity compared to those who did not pursue higher education. The potential long-term effects include more cautious spending habits and delayed major purchases like buying a home.