As the three-year payment hiatus for federal student loans concluded in October, around 40% of the 22 million borrowers, equivalent to approximately 9 million Americans, have yet to resume payments as of mid-November, according to a Department of Education report.

This statistic excludes individuals still in school, recent graduates without outstanding payments, and those with extended deadlines due to servicing errors.

Despite interest accruing from September 1, many borrowers are encountering challenges in restarting payments, with the average monthly bill ranging between $200 and $299, and even higher for some borrowers, as per the latest Federal Reserve data.

In October, borrowers collectively resumed payments of about $10 billion per month, according to JPMorgan’s analysis.

This resumption of student loan payments occurs against the backdrop of broader economic challenges, including persistent high inflation and interest rates, potentially delivering a financial shock to millions of Americans.

Experts anticipate that these additional financial obligations could hinder consumers’ ability to spend at major retailers like Target, Nike, Under Armour, and Gap.

While some borrowers had hoped for loan forgiveness, the Supreme Court earlier this year rejected President Biden’s plan to forgive up to $20,000 per borrower.

In response, the White House has introduced alternative measures, such as erasing $127 billion in debt for approximately 3.6 million borrowers.

The student loan landscape remains a focal point for policymakers, with ongoing discussions and initiatives aimed at addressing the challenges faced by borrowers and exploring potential avenues for broader debt relief.