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How the Student Loan Payment Pause Affected Borrowers’ Credit Access and Credit Use
Abstract: This brief examines how the pandemic-related, 43-month moratorium on federal student loan payments and interest accruals affected borrowers’ credit card limits and balances. The pause freed up an average of $280 a month for each of the 17 million student loan holders in active repayment, and it included a provision that erased previous defaults on student loans.
Keywords: student loans; payment pause; consumer behavior; credit cards;
JEL Classification: G51; H81; I22;
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https://www.bostonfed.org/publications/current-policy-perspectives/2025/how-the-student-loan-payment-pause-affected-borrowers-credit-access-and-credit-use.aspx
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https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2025/cpp20250113.pdf
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Provider: Federal Reserve Bank of Boston
Part of Series: Current Policy Perspectives
Publication Date: 2025-01-13
Number: 25-1