Approximately 42 million Americans have federal student loans, collectively owing $1.73 trillion. With the end of the CARES Act on Jan. 31, borrowers will face increasing financial pressure as monthly payments resume.
In March 2020, Congress passed the CARES Act, not only pausing payments but setting interest rates on student loans to 0% and halting collections on defaulted student loans. The Department of Education estimates that this policy saved borrowers as much as $4.8 billion per month of accrued interest.
