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Things in economy are counter-intuitive: > By the end of 2021, borrowers who saw their student loan payments paused increased their credit card, mortgage, and
by hartator 3y ago
Things in economy are counter-intuitive:
> By the end of 2021, borrowers who saw their student loan payments paused increased their credit card, mortgage, and car-loan debt by $1,800 on average and even took on an additional $1,500 in student loan debt compared to those whose loan payments were not paused by the moratorium.
It’s pretty cut and dry that they are worse off. We can argue about the whys, but people asking for a pause should not have been taken even more student debts.
- reaperman 3y ago> adding people asking for a pause should not have been taken even more student debts. Even if those borrowers were freshmen and sophomores, or decided to go to grad school in a down-cycle? 7% of student loan borrowers are still in school.
- hartator 3y agoSame applies for the ones not paused though.
- Ancapistani 3y agoThis seems misleading to me. To make the math more obvious, let's say 10% of debtors are still in school. If each of those took on, on average, $15,000 of additional debt for the next school year, that means the entire population of debtors has increased their debt by an average of $1,500.