Pause and Effect: Examining the Dynamics of the Student Loan Pause and the Challenge of Resuming Payments for Public Service Loan Forgiveness Borrowers
DOI:
https://doi.org/10.32674/ykznrz79Keywords:
public service loan forgiveness, student loan pause, subjective well-being, student loan repayment, savings and debtAbstract
This qualitative inquiry delves into the experiences and sense-making of borrowers enrolled in the Public Service Loan Forgiveness (PSLF) program, focusing on the impact of the student loan debt pause (The Pause) and the looming resumption of repayments. Through semi-structured interviews with 104 borrowers conducted between July and September 2023, the study reveals that The Pause alleviated borrowers' mental distress, enabling them to bolster savings, reduce other debts, and reconsider familial planning. However, the return to loan payments heightened mental distress, leading borrowers to contemplate strategies such as cost-cutting, drawing down savings, and seeking additional income through secondary employment. The implications underscore the substantial benefits of The Pause for PSLF borrowers, highlighting its role in providing immediate financial relief and facilitating more secure longer-term financial planning. Conversely, the prospect of resuming repayments presents multifaceted challenges, both financial and psychological, necessitating nuanced policy considerations.
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