ELI5 how people who own homes and are paying for them are impacted by student loan payments resuming? Is the assumption that the bank loaned them money without considering the loan since it was paused and now they have a home they can't afford? Is that really a majority of homeowners/school loan people? The loans have been paused for three years not 30.

Anonymous wrote:Take a wild guess, where we are in this...

Ooh, you found a random graphic on reddit. You must now be an economist. Congrats on defending your dissertation.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People on this board are so out of touch that they have no clue how much this impacted spending habits for a huge segment of the population. For many folks, it was like having $2K extra in your pocket every month, and lots of folks are not great savers, so that extra money was often spent rather than being saved. It's going to be a total s***show once people have to start paying on their loans again.

You're the same type of person that stopped making rent payments or mortgage payments during the pandemic because the govt allowed it, not because you lost your job. You had the money all along you just decided to spend it on botox and vacations instead. Pay up. Do the right thing.

100% agreed on doing the right thing. Many people make student loan payment even when they were allowed to pause. It's a burden for the entire society if you don't pay your debts.

Actually, no. The financially savvy people asked for their payments during the pause be refunded then they invested the money or put it back in a high interest account. But no one just paid during the pause.

Anonymous wrote:

Anonymous wrote:People on this board are so out of touch that they have no clue how much this impacted spending habits for a huge segment of the population. For many folks, it was like having $2K extra in your pocket every month, and lots of folks are not great savers, so that extra money was often spent rather than being saved. It's going to be a total s***show once people have to start paying on their loans again.

You're the same type of person that stopped making rent payments or mortgage payments during the pandemic because the govt allowed it, not because you lost your job. You had the money all along you just decided to spend it on botox and vacations instead. Pay up. Do the right thing.

100% agreed on doing the right thing. Many people make student loan payment even when they were allowed to pause. It's a burden for the entire society if you don't pay your debts.

Anonymous wrote:People on this board are so out of touch that they have no clue how much this impacted spending habits for a huge segment of the population. For many folks, it was like having $2K extra in your pocket every month, and lots of folks are not great savers, so that extra money was often spent rather than being saved. It's going to be a total s***show once people have to start paying on their loans again.

You're the same type of person that stopped making rent payments or mortgage payments during the pandemic because the govt allowed it, not because you lost your job. You had the money all along you just decided to spend it on botox and vacations instead. Pay up. Do the right thing.

Anonymous wrote:I agree that sh*t is about to hit the fan. Maybe the majority of people on here are well off enough to start making payments but student loan repayments will impact the economy regardless. not sure if it will crash the housing market, highly doubt it but expect a major slow down. imagine suddenly having to fork up hundreds of dollars out of nowhere, especially since the dems have been talking it up as being "unfair" etc etc.

If you have student loans and the resumed payment comes "out of nowhere," you are:

a) too stupid for words;
b) so clueless it hurts;
c) careless about money at a level that is difficult to comprehend; or
d) all of the above.

The answer is d).

People on this board are so out of touch that they have no clue how much this impacted spending habits for a huge segment of the population. For many folks, it was like having $2K extra in your pocket every month, and lots of folks are not great savers, so that extra money was often spent rather than being saved. It's going to be a total s***show once people have to start paying on their loans again.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much? Lol it’s a lot of money, like 5 billion a month in payments!!!! It will have a major effect on the entire economy.

"The pause is gone within 60 days of this being signed," McCarthy told Fox News anchor Shannon Bream. "So that is another victory because that brings in $5 billion each month to the American public."

Except that Biden has changed the federal loan repayment formula through the Department of Education, effectively requiring only pennies on the dollar repayment with generous forgiveness terms.

Oh how I wish this were true. -person above who will be paying $1200/m on $90K a year from now.

And why is this my problem? It's not. Pay up or default and destroy your credit. These are the decisions I had to also make.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much? Lol it’s a lot of money, like 5 billion a month in payments!!!! It will have a major effect on the entire economy.

"The pause is gone within 60 days of this being signed," McCarthy told Fox News anchor Shannon Bream. "So that is another victory because that brings in $5 billion each month to the American public."

Except that Biden has changed the federal loan repayment formula through the Department of Education, effectively requiring only pennies on the dollar repayment with generous forgiveness terms.

Oh how I wish this were true. -person above who will be paying $1200/m on $90K a year from now.

I was paying about $630/month on balances of more than that. And that was years ago. Something wrong with your choices.

"New Paradigm" = AI. Stock market is going nuts. Enjoy it while it lasts.

Take a wild guess, where we are in this...

I agree that sh*t is about to hit the fan. Maybe the majority of people on here are well off enough to start making payments but student loan repayments will impact the economy regardless. not sure if it will crash the housing market, highly doubt it but expect a major slow down. imagine suddenly having to fork up hundreds of dollars out of nowhere, especially since the dems have been talking it up as being "unfair" etc etc.

Debt ceiling deal includes a provision that there will be no further pauses on student loan repayments. So beginning in a few months, everyone will be repaying.

Isn’t RTO bringing people back to the area job market? Also, DC home prices didn’t increase as much as other areas during the pandemic. I’ve even seen people from secondary and tertiary cities sell their 3x home and move to a first-tier city because now they have the equity to be competitive buyers. DC homes are now cheap relative to good neighborhoods in good cities elsewhere. I think home prices here will continue to climb modestly, but consistently.

Anonymous wrote:

Anonymous wrote:How much? Lol it’s a lot of money, like 5 billion a month in payments!!!! It will have a major effect on the entire economy.

"The pause is gone within 60 days of this being signed," McCarthy told Fox News anchor Shannon Bream. "So that is another victory because that brings in $5 billion each month to the American public."

Except that Biden has changed the federal loan repayment formula through the Department of Education, effectively requiring only pennies on the dollar repayment with generous forgiveness terms.

Oh how I wish this were true. -person above who will be paying $1200/m on $90K a year from now.