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News Update

Many Californians could struggle with student loans when repayment pause ends

Close to 545,000 Californians may struggle to repay student loans when the federal pause on  such payments ends on May 1, the Sacramento Bee reported Wednesday

Based on a study by the California Policy Lab, the Bee reported that those likely to be at risk when the pause ends are people who were “delinquent or in default on any loan in the year before the pause, or if they were delinquent on a pause-ineligible loan during the pause period.”

The repayment pause helped such borrowers get through the pandemic, the newspaper reported. “Put plainly, the pause on student loan payments worked,” Dalié Jiménez, director of the Student Loan Law Initiative at University of California, Irvine School of Law, told the Bee.

President Joe Biden is reportedly considering extending the pause for a fourth time.