How the Student Loan Payment Pause Affected Borrowers’ Credit Access and Credit Use

Daniel Cooper and Maddie Haddix

No 25-1, Current Policy Perspectives from Federal Reserve Bank of Boston

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 (search for similar items in EconPapers)
JEL-codes: G51 H81 I22 (search for similar items in EconPapers)
Pages: 9
Date: 2025-01-13
New Economics Papers: this item is included in nep-pay
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