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This affects about 40.5 million borrowers on average to the tune of $390/month. That’s just federal loans, which are 87% of the loans. I can’t imagine this no

• dr-detroit 3y ago
  [dead]
• quags 3y ago
  Pre Covid standard payments were made so this is bringing things back to a pre Covid level. Post Covid there was a significant rise in inflation ( ppp loans / money supply / student loan debt) I’d assume this starting will reduce inflation by pulling money out of consumer spending. I don’t believe student loan debt is the cause of inflation, and the ppp forgiveness is likely a larger forgiveness than student load debt.
  • Accujack 3y ago
    >I’d assume this starting will reduce inflation by pulling money out of consumer spending. You're assuming people are spending money they would otherwise use to pay these loans. In fact, many of the people who owe on student loans can't pay them, or can only pay barely enough to keep them from growing. So what will happen is a lot of defaults or (for those who pay) a lot of people who can't save enough money for a down payment on a home or can't afford to have kids, or other problems caused by living hand to mouth.