10 ms·
When Student Loan Payments Resume, Households Will Feel the Pinch
- engineer_22 4y agohttps://archive.is/b2Z0I https://archive.is/b2Z0I
- fundad 4y agoDon’t
- engineer_22 4y agoTL;DR: Economist company Jeffries says that people will have less money to spend if they have more bills.
- paulddraper 4y agoHuh. I wonder what he has to say about the effects of increasing money supply on prices.
- eldritch_4ier 4y agoSure, I certainly feel the pinch every time I have to pay for things I purchased. I have student loans too. Is this article implying we should feel bad for the top 30% most educated Americans because they had the pay for the privilege?
- paulddraper 4y agoWho was it written by
- nicenewtemp84 4y agoMy college gf went to med school after undergrad. She maxed out every loan she ever could during med school. At one point she was living in a high rise of a hotel that would fetch her car for her at a predetermined time daily and have it parked out front, for a fee.
- solarmist 4y agoI don't know what the point of this comment is. She was rich or made poor life choices?
- nicenewtemp84 4y agoShe used student loans like most of her peers did.. to pay for luxury items.
- kanbara 4y agoand your anecdote and anecdotal evidence proves nothing. everyone i know took loans out, bought a computer, got jobs and still have a hard time paying back $10s of thousands
- deleted 4y ago[deleted]
- nicenewtemp84 4y agoIf my anecdote of seeing tons of students living large on their loans means nothing, yours means nothing too. Except logic, human nature, and statistics back my claims up too.
- solarmist 4y agoThis was not common in my social circles in the early 2000s. More often than not, people would take as little as possible (to the point they were barely getting by) because they were scared of being unable to pay them back. But these were also people that couldn't imagine going to an out-of-state school because of the tuition costs. Maybe a computer with a graphics card upgrade, but that was the extent of it. Also, the idea that you could you student loans for non-essentials was a foreign idea. But some people I knew did take out more than they needed, but it was enough to get pizza once a week, not live in a hotel. It makes me wonder, were loan limits much lower 20 years ago than now? It feels like this kind of over spending would have literally been impossible when I was in school.
- jjeaff 4y ago40% of student loan holders did not finish their 4 year degree. Imagine if this were any other product, I think the sellers would be under heavy investigation for perpetuating a big fraud. At the very best, many universities are guilty of false advertising.
- p1necone 4y agoDoesn't that depend on the subject? I would find a close to 100% pass rate in medicine for example a little bit concerning.
- legitster 4y agoIn the time since my loan payments were paused they lost over 12% of their real value through inflation alone. It's hard for me to complain, but the longer the can gets kicked down the road the more taxpayers are already paying for it.
- throwaway6734 4y agoIt's also incredibly regressive: the most well off are getting the biggest handout. A doctor with large medical student loan debt has easily received more then 20k in subsidies over this time
- rayiner 4y agoThe government deferred enough of our law school loans during covid to buy a nice car. Then I used Fed Monopoly money to refinance them at 3%. I don’t think I’ll ever pay them off.
- sschueller 4y agoI have the feeling this deferment will continue indefinitely because they can't forgive them because it's supposedly political suicide nor can they not extend it as it will cause too much of an economic impact.
- bequanna 4y agoI don’t think this is legally possible as the deferment was only able to happen via special powers resulting from the declaration of a national emergency around COVID. Once the national emergency is declared over, I believe the clock starts ticking for repayment to resume.
- sschueller 4y agoWhy was it extended after the new year? COVID is over.
- JohnClark1337 4y ago[dead]
- chasd00 4y agoi'm about to turn 47 and have maybe $4k left on my student loan. I bet the day i make hte last payment is the day they announce loan forgiveness for good hah.
- ProllyInfamous 4y agoHappy Fiftieth!!! Cancer!!! Yay!!!
- cwmma 4y agoYou'd be able to get your money back in that case. The recent Biden plan was set up in a way that didn't punish people that kept up with them during covid.
- htss2013 4y agoWho is relying on the cashflow from these loans that haven't been paid in 3 years? With every other loan or bond, someone's business model or ability to stay solvent relies on interest payments coming in. Apparently student loans exist in the ether where pay or don't pay for 3 years, whatever, it won't make a difference?
- uejfiweun 4y agoI’m pretty sure it’s the fed who underwrites these loans, right? Can’t imagine they care too much about the lack of payments, they have a beautiful money printer.
- paulddraper 4y agoYeah, it used to be privatized, but 8(?) years ago that stopped.
- TexanFeller 4y agoWell on the bright side, taking money away from young upcoming professionals en masse may help inflation.