Student loan payments resume, how it can shake the economy.

HOLLISTER, Calif. (KION-TV): Millions of student loan borrowers will be required to make payments this month, after a 3-year hiatus.

Hartnell Economics Instructor, Christina Esparza Luna said borrowers are still struggling to make ends meet .

"Now they're going to have to spend 2, 3, $400 even, $700, 1,000 a month with whatever their payment is to repay those loans," said Esparza Luna. "That means it's less than their spending on other things. added Esparza Luna. "It's less money that they're able to save for a house, it's less money that they're able to spend on groceries or other things."

For that reason, CSUMB said they're committed to providing a high quality education at an affordable price to their students. And they said, quote:

"In the last year, we increased our scholarship disbursement to students two-fold and the average student loan debt of students who took out loans decreased."

The Biden Administration introduced the “Save program” to alleviate student loan payments, but Esparza thinks more needs to be done.

"Going back to the structure of the system, how are we going to stop? how are we going to address the fact that there are college students right now who are potentially signing up for more loans," said Esparza Luna. "So, we can help the people that have student loans today but what are we going to do for students who are graduating next year, or in 5 years, or in 10."

Esparza also said it's important for students to look out for grant programs or scholarships in their colleges, to help avoid loans as much as possible.