I haven’t read much about the potential impact to the economy from the end of the student loan payment freeze coming up, but it seems to me it could really put a dent in the spending habits of a lot of people. These are loans people haven’t been paying off in almost 3 years. They’ve likely gotten used to not paying it, and haven’t necessarily budgeted for the payments. These can be several hundred dollars a month and really hurt some folks ability to spend elsewhere. Do you guys think this will have a measurable impact or not really?
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Nah, I wasn’t making that payment before, why make it in January.
They should stop government-backed student loans. As long as these debts are not discharged with bankruptcy this will keep growing as a nightmare…
I think not…. these will just reduce the loan amount and unlike provide $10k free cash where people can spend.
They will be forgiven completely before the halt is up. We’ll 10k per person. At least. That won’t mean shit and entire economy lmao
Should help lower inflation actually
Probably not. 13% of the population only has student loans. Also people who are recent grads the past 5+ years with student loans already are working on tight budgets, and lack spending power.
Biden’s loan forgiveness is a huge inflationary contributor to prices since more people will be in demand for goods which are already in short supply, due to the fact that more people think they can afford a house or car with the forgiveness. They will be surprisingly hit with the new interest rates reality, along with higher costs. If it helps some people now to afford a house or car, that will push prices higher in an already extremely competitive market. However they will find that the interest rate hikes will now greatly surpass their student loan payments. It may allow them to save for down deposits, but that’s about it.
The interest rate hikes are way more insidious now than student loans.
The interest rates are having more ripple effects than people realize, it’s just a matter of time until it finally sets in and people see/feel the effects.
23 million people with an avg payment of 460. Coming out of the economy. So 10.5 billion a month. Let’s just say 1/2 those people weren’t spending that money. So economy isn’t losing 5 billion/month. I’d say that will cause an impact.
Yes they’ve packaged those shitty loans into investment vehicles and when people start defaulting … collateral goes to shit.
The day these payments kick back in = beginning of the recession that’s been can kicked for multiple years now.
These people had 3 years to save . Maybe it will get some ppl evicted and free up real estate for working Americans
>It’s hard to say definitively, but it seems like it could definitely have an impact on spending habits. A lot of people who have been used to not making student loan payments may find themselves struggling to budget for the new payments. This could lead to less spending in other areas of the economy as people adjust their budgets to accommodate their student loan payments.