Restarting Student Loans Payments in Sept Will Be a $40 Billion Hit to the Economy

[ElectroMan]

As part of the debt ceiling deal between House Speaker Kevin McCarthy and President Joe Biden, a pause on student loan repayments that has been in place since the Covid-19 pandemic will be terminated after August 30. Around 43 million Americans who were allowed to suspend payments on their federal loans will have to resume them as of September 1. That could result in a hit to borrowers’ spending power — and, as a result, a blow to the economy. Joseph Brusuelas, chief economist for RSM US, estimates that resuming these student loan payments could lead to a $40 billion decrease in household disposable income. A Credit Karma survey from March and April found that of 1,006 people with student loans, “43% of borrowers do not feel financially stable and 21% had no savings.”

On a related note, the Senate on Thursday passed a bill to block Biden’s student loan forgiveness program, which would cancel up to $20,000 in debt for borrowers. The House had previously passed the bill, which will now head to Biden’s desk. The president has said he will veto it. The Supreme Court is also expected to rule on the constitutionality of Biden’s plan later this summer.

Restarting Student Loans Payments Could Be a $40 Billion Hit to the Economy

As part of the debt ceiling deal between House Speaker Kevin McCarthy and President Joe Biden, a pause on student loan repayments that has been in place since the Covid-19 pandemic will be terminated after August 30. Around 43 million Americans who were allowed to suspend payments on their...

www.yahoo.com

 

[ORDER_66]

hit to the economy?!?

 

[Paper Boi]

hit to the economy?!?

the idea is these people would be spending that money somewhere else and stimulating the economy

instead if just goes to the government and produces nothing considering the money was already spent by the government years ago

 

[JT-Money]

Pay up deadbeats!

 

[Sohh_lifted]

hit to the economy?!?

Youre an idiot, just stop. Less spending power = hit to the economy.

 

[ORDER_66]

the idea is these people would be spending that money somewhere else and stimulating the economy

instead if just goes to the government and produces nothing considering the money was already spent by the government years ago

That's what i initially thought... like this isnt feeding the fukking economy...

 

[A Pimp Named Slickback]

the idea is these people would be spending that money somewhere else and stimulating the economy

instead if just goes to the government and produces nothing considering the money was already spent by the government years ago

Youre an idiot, just stop. Less spending power = hit to the economy.

That's why I'm not posting at length in this thread

Economy is fukked. Politics are fukked. This country is fukked. In more ways than one

 

[ORDER_66]

Youre an idiot, just stop. Less spending power = hit to the economy.

what about the billions going to ukraine and millions going to illegals???Surely that will stimulate the economy

 

[JetFueledThoughts]

If you’re a $SOFI investor it’s not a hit to your personal economy

 

[Worthless Loser]

I see it as a good thing. If spending power is down, then in theory demand would go down, which is needed to fight/decrease inflation.

The time to pay student loans was over the last 3 years anyway. 0% interest rate.

 

[A Pimp Named Slickback]

Reparations would stimulate the economy

Way more than billions to other countries

They would take me out if I ever got in Congress

 

[UpAndComing]

I'm 50/50 on this

50% - As a student you were an adult when you signed off on these student loans, so it's your obligation to pay them back

Other 50% - It is the Government's fault in the first place for enabling Colleges to raise their tuition rates 10x more because they would guarantee those loans, which made the Government get financial kickbacks from it. So it's up to them to end the mess that they created

 

[8WON6]

Just rename student loans into "ppp loans" and people won't say shyt.

 

[Big Blue]

Just rename student loans into "ppp loans" and people won't say shyt.

False equivalency. PPP loans were a thing because the government FORCED many businesses to close. The government didn't force anyone to go to college.

 

[bourgeoisie tall freak]

If you’re a $SOFI investor it’s not a hit to your personal economy

i keep seeing this meme but i was under the impression that sofi doesn't hold the federal loans that are on pause, they hold private loans that were not elligible under this plan?