Student Loan Payment Pauses Surge Amid Economic Strain

Many people with student loans are putting their payments on hold.

This is because of rising costs, stagnant wages, and previous payment problems.

There are two main ways to pause payments: deferment and forbearance.

Deferment can sometimes mean you don't pay interest, while forbearance always means interest keeps growing.

While these pauses can help avoid immediate problems like wage garnishment, they aren't a long-term solution.

Income-driven repayment plans may be a better choice, helping people stay on track to have their loans forgiven after 10-25 years.