New Research in Millennial Student Debt: The Repayment Pause and the Continuing Crisis of Non-Repayment

Today, Eduard Nilaj, Sérgio Pinto, Marshall Steinbaum, and Laura Beamer of JFI’s Higher Education Finance initiative published part 12 of their flagship Millennial Student Debt research series.

The new report, “The Repayment Pause and the Continuing Crisis of Non-Repayment,” analyzes what happened during the two and half year period in which repayment of federal student loans was formally paused thanks to the pandemic repayment moratorium. 

From the summary:

Our single most striking finding is that the repayment pause actually resulted in the highest student loan balances decreasing for the first time ever, most likely due to the fact that interest rates were set to zero, enabling those high-balance borrowers to make progress paying off principal. 

Find a summary and the full report here.

Download the report as a PDF.

From the series:
Millennial Student Debt