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> Emerging research has found that in addition to freeing up cash, the repayment pause coincided with a marked improvement in borrowers’ credit scores, most lik

> Emerging research has found that in addition to freeing up cash, the repayment pause coincided with a marked improvement in borrowers’ credit scores, most likely because of cash infusions from other pandemic relief programs and the removal of student loan delinquencies from credit reports. That let people take on more debt to buy cars, homes and daily needs using credit cards — raising concerns that student debtors will now be hit by another monthly bill just when their budgets are already maxed out. So.... We tried to address the "people have too much debt" problem, and people reacted by using that help to take on extra debt that they wouldn't have otherwise. Maybe the root problem here isn't the debt but people being shit with money?

stevefan1999 3y ago
That's why USA is also one of the most indebted country because people didn't spend money wisely. This is caused by the consumerism trend over the last 40 years. And consumerism is what capitalism always wanted. So the very problem is capitalism itself
- hsjqllzlfkf 3y ago
  > That's why USA is also one of the most indebted country By what metric? I just looked it up[1], and by % of GDP the USA is the 44th most indebted at 96%, between Tunisia and Guine-Bissau. 96% is quite low amongst first world countries. [1] https://en.m.wikipedia.org/wiki/List_of_countries_by_external_debt https://en.m.wikipedia.org/wiki/List_of_countries_by_externa...
paulpauper 3y ago
I don't understand how it is being shit with money when the data shows college grads have way better career prospects compared to non-grads? it is rational to take on debt assuming you graduate.
- hsjqllzlfkf 3y ago
  I think you're confused. According to the text I quoted, it's not the case that student loans delinquencies are hidden, and so students take on even more student debt to get an even more expensive degree and presumably a shot at an even higher paying job. No, instead they go and buy more expensive cars and houses. If you take on as much debt as you can for the purpose of consumption, you're shit with money. The fact that grads make more money than non grads is irrelevant here.

stevefan1999 3y ago

That's why USA is also one of the most indebted country because people didn't spend money wisely. This is caused by the consumerism trend over the last 40 years. And consumerism is what capitalism always wanted. So the very problem is capitalism itself

hsjqllzlfkf 3y ago
> That's why USA is also one of the most indebted country By what metric? I just looked it up[1], and by % of GDP the USA is the 44th most indebted at 96%, between Tunisia and Guine-Bissau. 96% is quite low amongst first world countries. [1] https://en.m.wikipedia.org/wiki/List_of_countries_by_external_debt https://en.m.wikipedia.org/wiki/List_of_countries_by_externa...

paulpauper 3y ago

I don't understand how it is being shit with money when the data shows college grads have way better career prospects compared to non-grads? it is rational to take on debt assuming you graduate.

hsjqllzlfkf 3y ago
I think you're confused. According to the text I quoted, it's not the case that student loans delinquencies are hidden, and so students take on even more student debt to get an even more expensive degree and presumably a shot at an even higher paying job. No, instead they go and buy more expensive cars and houses. If you take on as much debt as you can for the purpose of consumption, you're shit with money. The fact that grads make more money than non grads is irrelevant here.