Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

Justin Cole, 35, of Little Rock, Arkansas, said he doesn’t know how he’s going to come up with the $166 a month he’ll owe starting in October. That’s the estimated payment on his roughly $19,000 of loans from paying for college more than 10 years ago.

Cole works the front office at a medical practice, checking in patients, handling records and managing payment collection. Some of his other debt comes from medical expenses after a car accident early in the pandemic. His major household expenses are “rent, car payments, groceries, and utilities — the same as everybody else,” he said.

On an earnings call last month, the chief financial officer of Target said that student loan payments restarting will “put additional pressure on the already-strained budgets of tens of millions of households,” a sentiment echoed by the financial chiefs of Best Buy and other retailers., one restaurant-industry observer in Boston said workers are taking on more hours, and, for the first time, credit card debt has topped $1 trillion.

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