"Student loan cliff looms as repayment pause ends: What to do"

President Biden's debt deal with House Speaker Kevin McCarthy will end the student loan payment freeze, potentially pushing millions of Americans off a "student loan cliff" and impacting the economy by $18 billion each month. With U.S. household debt at a record $17 trillion and credit card balances surging, many borrowers may have to scale back spending to afford monthly payments or risk accruing interest and adding to their already large pile of debt. The debt deal does not touch upon Biden's plan for student loan forgiveness, which is currently in the hands of the Supreme Court. Some experts warn that resuming loan payments without first canceling student debt could result in a catastrophic wave of unnecessary borrower distress and default.