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How the Student Loan Payment Pause Affected Borrowers' Credit Access and Credit Use. Current Policy Perspectives. 25-1

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Title: How the Student Loan Payment Pause Affected Borrowers' Credit Access and Credit Use. Current Policy Perspectives. 25-1
Language: English
Authors: Daniel H. Cooper, Maddie Haddix, Federal Reserve Bank of Boston
Source: Federal Reserve Bank of Boston. 2025.
Availability: Federal Reserve Bank of Boston. P.O. Box 55882, Boston, MA 02205. Tel: 617-973-3000; Tel: 617-973-3397; e-mail: boston.library@bos.frb.org; Web site: https://www.bostonfed.org/
Peer Reviewed: N
Page Count: 9
Publication Date: 2025
Document Type: Reports - Research
Education Level: Higher Education
Postsecondary Education
Descriptors: Student Financial Aid, Loan Repayment, Public Policy, Federal Aid, Loan Default, Debt (Financial), Policy Analysis, Credit (Finance), Futures (of Society), Economic Climate, COVID-19, Pandemics, Correlation, Paying for College
Abstract: Early in the COVID-19 pandemic, the Trump administration paused federal student loan payments and interest accruals as a temporary relief measure for borrowers. The pause covered roughly 90 percent of all outstanding student loans, affecting about 38 million individuals, who collectively held a balance of $1.5 trillion. For each of the 17 million student loan borrowers in active repayment, the pause freed up $280 a month, on average, or about $13,500 per person over the entire 43-month period that the policy remained in effect. Another important feature of the pause was the provision that offered large-scale forgiveness of derogatory marks (DM) against individuals who had previously defaulted on a student loan. This brief examines how the pause affected federal student loan holders' credit access and credit use. Assessing the impact of the pause is important for understanding the efficacy of the policy change or of similar policies that could be considered during future periods of economic distress.
Abstractor: ERIC
Entry Date: 2025
Accession Number: ED671781
Database: ERIC
FullText Text:
  Availability: 0
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  Data: How the Student Loan Payment Pause Affected Borrowers' Credit Access and Credit Use. Current Policy Perspectives. 25-1
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  Data: <searchLink fieldCode="SO" term="%22Federal+Reserve+Bank+of+Boston%22"><i>Federal Reserve Bank of Boston</i></searchLink>. 2025.
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  Data: Federal Reserve Bank of Boston. P.O. Box 55882, Boston, MA 02205. Tel: 617-973-3000; Tel: 617-973-3397; e-mail: boston.library@bos.frb.org; Web site: https://www.bostonfed.org/
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  Data: 9
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  Data: 2025
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  Data: <searchLink fieldCode="EL" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="EL" term="%22Postsecondary+Education%22">Postsecondary Education</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22Student+Financial+Aid%22">Student Financial Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+Repayment%22">Loan Repayment</searchLink><br /><searchLink fieldCode="DE" term="%22Public+Policy%22">Public Policy</searchLink><br /><searchLink fieldCode="DE" term="%22Federal+Aid%22">Federal Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+Default%22">Loan Default</searchLink><br /><searchLink fieldCode="DE" term="%22Debt+%28Financial%29%22">Debt (Financial)</searchLink><br /><searchLink fieldCode="DE" term="%22Policy+Analysis%22">Policy Analysis</searchLink><br /><searchLink fieldCode="DE" term="%22Credit+%28Finance%29%22">Credit (Finance)</searchLink><br /><searchLink fieldCode="DE" term="%22Futures+%28of+Society%29%22">Futures (of Society)</searchLink><br /><searchLink fieldCode="DE" term="%22Economic+Climate%22">Economic Climate</searchLink><br /><searchLink fieldCode="DE" term="%22COVID-19%22">COVID-19</searchLink><br /><searchLink fieldCode="DE" term="%22Pandemics%22">Pandemics</searchLink><br /><searchLink fieldCode="DE" term="%22Correlation%22">Correlation</searchLink><br /><searchLink fieldCode="DE" term="%22Paying+for+College%22">Paying for College</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Early in the COVID-19 pandemic, the Trump administration paused federal student loan payments and interest accruals as a temporary relief measure for borrowers. The pause covered roughly 90 percent of all outstanding student loans, affecting about 38 million individuals, who collectively held a balance of $1.5 trillion. For each of the 17 million student loan borrowers in active repayment, the pause freed up $280 a month, on average, or about $13,500 per person over the entire 43-month period that the policy remained in effect. Another important feature of the pause was the provision that offered large-scale forgiveness of derogatory marks (DM) against individuals who had previously defaulted on a student loan. This brief examines how the pause affected federal student loan holders' credit access and credit use. Assessing the impact of the pause is important for understanding the efficacy of the policy change or of similar policies that could be considered during future periods of economic distress.
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  Data: 2025
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PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED671781
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      – Text: English
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      Pagination:
        PageCount: 9
    Subjects:
      – SubjectFull: Student Financial Aid
        Type: general
      – SubjectFull: Loan Repayment
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      – SubjectFull: Public Policy
        Type: general
      – SubjectFull: Federal Aid
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      – SubjectFull: Loan Default
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      – SubjectFull: Debt (Financial)
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      – SubjectFull: Policy Analysis
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      – SubjectFull: Credit (Finance)
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      – SubjectFull: Futures (of Society)
        Type: general
      – SubjectFull: Economic Climate
        Type: general
      – SubjectFull: COVID-19
        Type: general
      – SubjectFull: Pandemics
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      – SubjectFull: Correlation
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      – SubjectFull: Paying for College
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      – TitleFull: How the Student Loan Payment Pause Affected Borrowers' Credit Access and Credit Use. Current Policy Perspectives. 25-1
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              Y: 2025
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