How Were Student Loan Borrowers Affected by the Pandemic? An Essay for the Learning Curve

The US Supreme Court will hear arguments next month about whether President Biden has the authority to forgive up to $20,000 in student debt for millions of borrowers. Part of the Biden administration's legal argument rests on the claim that borrowers as a group were made worse off financially by the pandemic. Urban Institute's analysis indicates that most borrowers are currently in a similar or stronger financial position than they were in 2019, but there are warning signs that many borrowers will be in a weaker position once the payment pause ends. Key findings from this report include: (1) Most borrowers said they were doing at least as well financially in 2021 as they were before the pandemic; (2) Credit records also show financial improvement; and (3) The role of the payment pause is unclear, as is what will happen when payments resume.