As October begins, student loan payments, which had been paused during the pandemic, will resume.
Borrowers are taking on more shifts and side gigs for extra income as well as looking for ways to reduce their monthly expenses.
According to the credit bureau TransUnion®, credit card debt has surpassed $1 trillion, with a large portion attributed to individuals who had student loans during the pandemic.
In July, the Supreme Court rejected a Biden administration plan to forgive $400 billion in student debt.
Some have opted for adjustments through the Biden administration's SAVE plan, which lets borrowers make lower payments based on their income.
Public Service Loan Forgiveness is another program that erases the remaining debt for public service workers who have made federal student loan payments for 10 years.
The loans of around 804,000 borrowers, amounting to $39 billion, will be forgiven under a one-time adjustment by the Biden administration.
It is still unknown how the resuming of these repayments will affect the economy.