Ryan Moran, a nurse in Jacksonville, Florida, hasn’t thought about his federal student loans in years. But this month, he’s scrambling to figure out how to make room in his budget for his $500 monthly bill.
He and his wife, Amelia, plan to dine out less and to skip the football games they love to attend. His grocery bills will also need to shrink.
“And it’s not only consumption that decreases,” said Moran, 26. “Increasing monthly payments means I have to work overtime, taking time away from my family.”
The pandemic-era pause on federal student loan payments ends Sunday, leaving as many as 40 million Americans on the hook for a new monthly bill they haven’t needed to make in more than three years.
Economists caution that the impact on households and the economy remains largely uncertain, as there is little precedent for borrowers getting such a long break from their loan bills. But as the Biden administration ramps up repayment of the more than $1.7 trillion in federal student loan debt, retailers and lenders are bracing for a hit.
American households will get their first bills during an especially volatile period, with the highest interest rates in decades, workers on strike across the country and a looming government shutdown.
“The economy will struggle in the fourth quarter, in meaningful part due to the end of the student loan payment moratorium,” said Mark Zandi, chief economist at Moody’s Analytics.
I took out a loan to buy my house-the payments were not suspended during the ‘Vid era…people that take out loans (student, car, house, whatever!) KNOW they will have to be repaid…I have some sympathy as the parent of 2 that have student loans, but they also knew they would have to resume payment at some point, and they were encouraged to set the payment amount aside each month. To try to wipe out student loan debt is a slap in the face to those that paid their loans off.
Good for Ryan and Amelia, why should we as tax payers have to subsidize their dinner outings, football tickets, grocery bills, etc, etc. They are the people reaping the benefits of his student loan and they should be the ones repaying it.
Am I supposed to have pity for a nurse making over 100+K a year to now have to pay for the education they choose, full well knowing at the time, they had to pay it back?
No.
Waaaa !!!! They took the loans & Like the rest of us > Have to PAY them off !!! Make Dem Party PAY for it !!!!!
Boo hoo. Stop whining.
Luxury spending, including dining out, ridiculous TV streaming packages,
nail salon visits, car detailing, unnecessary clothing, bar visits, package vacations, etc., can be eliminated or reduced. Young people don’t generally have a good grip on economizing or the concept of doing without. That will change.
when you borrow money and sign the paper work you promise to pay it back yourself. That poor poor nurse will have to skip football games, hah. I can’t even afford to go to lunch. I’m making and eating all my food at home. repay your loan and don’t depend on the government to pay your bills. that’s what adults do.
Nobody pays MY bIlls !!! So GROW UP Snow Flakes !!!!!
If students get their loans paid, then seniors should have their rent paid, car payments made, food, etc.
Pay back my debt? But I need to buy a new videogame and $6 coffee!
I went to a technical school because that was all I could afford after high school and it took me ten years to pay off that loan and another 30 years to finally pay off my house. I don’t feel a damn bit sorry for them. They made their decision and now i have to pay for it? It’s called living within your means.