Posted on 06/04/2023 7:42:27 AM PDT by Libloather
Student-loan payments are resuming this year. It's likely going to hurt not just borrowers, but the entire US economy.
In March 2020, former President Donald Trump first implemented the student-loan payment pause to give borrowers financial relief during the pandemic. Trump and President Joe Biden since extended it multiple times - Biden in November most recently extended the relief through 60 days after June 30, or 60 days after the Supreme Court issues a final decision on the legality of the president' plan to cancel up to $20,000 in student debt for federal borrowers, whichever happens first.
And the most recent extension is very likely to be the final one. Education Secretary Miguel Cardona told lawmakers in early May that "we're going to resume payments for 60 days after, but no later than June 30. We're going to begin that process."
"We're confident, Senator, that the Supreme Court will rule in favor of the targeted debt relief, providing relief for millions of borrowers, and we want to make sure that the information that borrowers get is accurate. We do plan on making sure it's a smooth reentry to repayment," Cardona said, adding that "the emergency period is over, and we're preparing our borrowers to restart."
Biden also agreed to codify the end of the student-loan payment pause in the debt-ceiling deal he reached with Speaker of the House Kevin McCarthy, suggesting the president did not deem additional relief necessary for borrowers this year in connection with COVID-19.
But some economists think the administration - and the country - should start prepping for an economic strain once payments resume. Marshall Steinbaum, senior fellow at the Jain Family Institute and economics professor at the University of Utah, told Insider that "it's pretty clear the payment pause has been very stimulative to the...
(Excerpt) Read more at businessinsider.com ...
Trump shares the blame? Was this a law that he signed and executed? If not, he doesn’t control the purse.
My daughter worked her butt off in high school cause she knew we couldnt afford to help. She received several scholarships. She worked throughout college, took out minimal loans and paid them all back with a year or two of graduating. Graduated with a degree in nursing and psychology. She is now door dashing for a living since she refused the jab. We are so proud of her!
likely
That word again when no facts are available
I’m wondering if he’s also included an IRS forgiveness on the taxes due on a forgiven loan as taxable income.
No evidence. Lol. Check every American bank account. Trump gave more money to people than even Biden. Hundreds more each.
The economy would benefit long term if no shortage of Higher Edumacation institutions withered and kids could get a non-woke curriculum online.
Whew, we were stupid for paying for our tuition and our kids’ on time at the beginning of each semester. Now, we get the privilege of paying for everyone else’s, too. What a great country with great leaders.
Trump shares the blame?
I was referring to our current economic situation. He signed cares act of 2020. Which should have been called the free money act. It handed out money to citizens, employers, higher food benefits, rent assistance. He certainly does share blame for the economy. But, I still think he is our best chance to improve this.
“Families who buy a two door five-hundred horsepower car are not dealing with reality.”
Compare and contrast usefulness to a 400hp, 4-door F150....
This is a good thing. It will reduce inflationary pressures.
Janet Yellen should come out and say as much.
But she is in over her head so she will probably just say, “Oh! Boo hoo!! The poor babies need to be coddled some more.”
Pay up, slackers.
Call a Waaambulance.
Biden took wrong steps to avoid inflation because he had a specific agenda on energy and so on. How does servicing debt put more inflationary pressure on the economy? There’s less free money floating around so wouldn’t the price of goods begin to slow? It might “hurt” the service and retail sectors of the economy because college borrowers won’t be freely spending like drunken sailors now but that just means they’ll be forced to act more prudently with their money. It’ll help bring equilibrium.
There will still be entry level workers making way more than they should because starting wages that spiked during covid likely aren’t coming down. Young workers have lots of disposable income that previous generations did not. This is an inflationary pressure which is hurting the middle class who have been victims of wage compression. They have lost ground to entry level workers and inflation.
What teenager wouldn’t want to work at a grocery store for $15/hr with no debt, rent or obligations? That’s going to be rebalanced by reducing labor hours and added technology replacing workers outright eventually. Even Publix has self checkout at many of their stores now and larger retailers like Walmart and Kroger are adding conveyor belts to self checkouts to accommodate bigger orders that used to go to manned checklanes. Wendy’s is testing AI order taking. McDonalds is testing automated kitchens.
“Compare and contrast usefulness to a 400hp, 4-door F150....”
I’m 69. It’s almost humorous that now I can afford a two-seat super car, getting in and out of it would be agony. Fortunately, my tastes run to passenger cars made in America between 1939 and 1955 with a smattering of amorous glances at some late 60’s cars. BTW I’m keeping an eye open for a good used four door pickup, but I ignore the ones with performance motors as there’s no way I’d need those for hauling manure.
Go to a reenactment and you’ll find guys who never went to college who know more history than most college graduates.
Great idea!
Let’s teach an entire generation that someone else will always step in to pay their debts for them.
How will the economy suffer people having to pay their bills? The economy only functions when people pay their bills.
“ and the economy will suffer “
BI is such a putrid, Marxist swamp. Yeah it hurts the economy if people have to pay back their debt instead of the taxpayers.
On the Dave Ramsey Show just yesterday they were touting the FACT that by pausing the Student Loan payments for the past three years, it has COST THE TAXPAYERS upwards of 500 BILLION dollars!
Yeah. We got screwed - even when they tell us we’re not getting screwed. I guess we should just, ‘lie back and think of England.’ *ROLLEYES*
A POX on all their houses! *SPIT*
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