DENVER (KDVR) — It’s not just inflation that’s dampening the fiscal peak.
The federal government will begin collecting federal student loans from borrowers starting May 1. The Trump administration first suspended refunds shortly after the COVID pandemic began, and President Joe Biden extended that through 2021.
Nationally, borrowers owe a total of $1.74 trillion in student loans. It nearly doubled from $960 billion in 2011. Colorado borrowers owe $28.2 billion in total.
Colorado has one of the highest levels of student debt per person in the country. Borrowers in Colorado owe an average of $37,120 per person, the 14th highest among US states.
The average monthly student loan repayment is $460, up from $393 in 2020, according to the Education Data Initiative.
Of course, average salaries do not take into account the variation in student loan amounts.
Combined with other inflation measures, the reinstatement of student loans could add another $1,000 to household bills, according to Consumer Price Index data and updated rental information from ApartmentList.
The average natural gas bill is $28 more now than a year ago, groceries $31, monthly gasoline about $95, and Denver metro rent about $400 more.
Calls for Biden to extend the pause on student loan repayments have grown as the deadline draws closer. Under the pressure of inflation, 93% of borrowers in full employment say they are not ready to start paying again, according to a survey of 23,000 people from the Student Debt Crisis Center.
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