this post was submitted on 30 Jun 2023
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Honestly, this decision wouldn't probably impact future college attendees. But, there are other changes coming to federal borrowing that likely will. Income based repayment is being restructured and it's looking pretty good.
However, this will probably hurt the economy. A lot of people are about to hit repayment at a period of high inflation. It's not a great economy. And, if a lot of people decide to ignore their student loan bills a la 2008 financial crisis, were in for a global economic doozy.
The US has historically low unemployment, but real wages have stagnated for more than 50 years.
The economy is actually pretty great -- for those at the top. Not so much for those doing the real work:
I assume the second graph is basing inflation on CPI as well and if I'm not mistaken that would mean dollars spent on mortgages are equivalent to dollars spent on rent.
I would argue that as home ownership goes down inflation would become more impactful as you do not build wealth with rent but can with a mortgage.
It will impact future college attendees insofar as being more poor impacts your chances of going to college. It won't directly impact future college attendees, but there is a knock on effect which will to some extent.
True. We're all going to be a lot poorer after the incoming financial crisis this will help start.