DENVER (KDVR) — There’s more than inflation coming down the budget pike.
The federal government will start collecting federal student loans from borrowers beginning May 1. The Trump administration first paused repayments shortly after the COVID pandemic began, and President Joe Biden extended that through 2021.
Nationally, borrowers owe a total of $1.74 trillion in student loan debt. It has nearly doubled from $960 billion in 2011. Colorado borrowers owe $28.2 billion in total.
Colorado has one of the highest per-person student debt loads in the country. Borrowers in Colorado owe an average of $37,120 per person, the 14th-highest of U.S. states.
The average monthly student loan repayment is $460, up from $393 in 2020, according to the Education Data Initiative.
Average wages, naturally, do not account for the variation in student loan amounts.
Combined with other inflation measures, student loan reinstatement could add another $1,000 to household bills, according to Consumer Price Index data and updated rental information from ApartmentList.
The average natural gas bill costs $28 more now than last year, groceries $31, monthly gasoline around $95, and Denver metro rent around $400 more.
Calls for Biden to extend the pause on student loan payments have increased as the deadline draws closer. Under the pressure of inflation, 93% of fully-employed borrowers say they aren’t ready to begin paying again, according to a survey of 23,000 people from student debt advocacy Student Debt Crisis Center.