Bloomberg: . . . The $1.8 trillion student debt bubble is about to burst

Never mind the court case.
Nevermind if the president has the power to ignore congress and just pass any law he wants. (That is the other thread)

What impact will it have on the economy when “suddenly” 4 million people are unable to pay their student loans

  • 26 million Americans applied for student loan forgiveness, (CNBC)
  • 16 million got approved (CNBC)
  • Now, with the economy booming and jobs jobs jobs, more jobs than applicants, 4 million appear to be unable to make payments when those payments resume. (Bloomberg, link below)

Will they suddenly put down their phones and game controllers and seek jobs?
Will they get angry at corporations and the patriarchy for giving them only a 3-year hiatus, (including a booming job market) on repaying a low-interest loan?

More importantly what will this mean for total spending, rent and car payments in the rest of the economy?

From the article

After a three-year pause, payments on federal student loans are set to resume in the next six months, and the economic consequences will be far-reaching: More than 4 million Americans are expected to fall behind on their debt and millions more will struggle with the added costs as inflation slams consumers.

Even those who can handle the bills will have less money to spend elsewhere, with experts predicting more delinquencies on credit cards and auto loans as the impact cascades through the economy.
Bloomberg - Are you a robot?

If Biden’s smart, he’ll just keep keep them paused for the rest of his Presidency, and let the next Republican President (or Congress) deal with it.


Well, Joe Biden is hoping that he will be the next president.
Still, it would be just like a politician to kick the can down the road a bit.

The hard reality of this is that it’s all the result of a education and political system convincing a bunch of mediocre students to spend tens of thousands of dollars on worthless degrees!

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The article reads

Before the pandemic pause, borrowers paid an average of $393 per month toward their student debt.
4 million borrowers all at once defaulting on their loans?
Is that a possibility?