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Student Debt Squeeze Forces U.S. Borrowers to Cut Spending
Student Debt Squeeze Forces U.S. Borrowers to Cut Spending
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BTCCSquare news:
American households are tightening budgets as student loan payments resume after a pandemic-era pause. Federal Reserve data reveals the median borrower slashed $1,590 in annual spending—roughly $12.20 weekly per $10,000 owed—to meet obligations. While most remain current, delinquency rates exceed historical norms, signaling potential economic headwinds.
The repayment restart exposes fragile consumer balance sheets. Borrowers with typical $25,000 balances face stark tradeoffs between debt service and discretionary spending. This fiscal squeeze arrives amid broader concerns about consumer resilience and default risks in the $1.7 trillion student debt market.
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