Explain to me again why this is a hardship that America’s plumbers and factory workers should bear.
Mykail James has a plan for when payments on her roughly $75,000 in student loans restart next month. She’ll cut back on her “fun budget” — money reserved for travel and concerts — and she expects to limit her holiday spending.
“With the holidays coming up — I have a really big family — we will definitely be scaling back how much we’re spending on Christmas and how many things we can afford,” James said. “It’s just going to be a tighter income overall.”
In October, roughly 27 million borrowers like James will once again be on the hook for repaying their federal student loans after a three-year hiatus. President Joe Biden tried to use his executive powers to forgive about $400 billion in student debt last year, but the Supreme Court overruled that decision in June, and payments kick in again in October.
Now there are big questions about how those people — many of whom had expected to have at least some of their debt erased — may change their spending habits as they budget for student loan payments again. It could crimp the economy if a large share of consumers cut back simultaneously, especially because the resumption in payments comes just as the retail and hospitality industry begin to eye the crucial holiday shopping season.
Actually, this will be a VERY good thing in terms of reducing inflation (far less demand). And even though Bai-Den (and Congress) have set near-impossible goals, it could also reduce the Federal deficit.
How the #!*&…..
Phil Esempio, a 65-year-old high school chemistry and biology teacherin Nazareth, Pennsylvania, who owes around $150,000 in student loans, also expects to rein in his budget. Coming out of the pandemic, he excitedly returned to attending live shows in places like New York City — 78 concerts last year — and eating out while he’s there with his friends.
…. are you 65 and owe a 150 Gs in student loans???? This guy will be dead long before that money is paid back.
And when he goes room-temp, the loan balances are zeroed out.
I don’t understand how this works. How can you rack up 150k in debt and come out the backend nothing more than a high school science teacher?
Just a SWAG here, but he probably obtained an advanced degree or two in “teaching” and deferred repayment–which capitalizes the interest until you begin repayments. It’s also possible that he took out loans for his children’s college.
But notice the complete disregard for his debt. He went out to 78! concerts in a year. Figure $200 a pop (minimum) with transit, ticket, maybe dinner and a beer. And that assumes that he was alone. Minimum $15,600 in concerts in a single year when the deadbeat owes $150k. That’s just immoral.
>I don’t understand how this works. How can you rack up 150k in debt and come out the backend nothing more than a high school science teacher?
I just turned 60 last month. I went to College and got my education degree, my total bill was about 12k, including room and board. I hope he did rack it up from his kids, but though they can help repay it, I did not even know parents could be the name on the student loan. I thought it had to be the student. He may have gone to school in his 40s to get that teaching job too, I guess.
It’s a nice racket, though. Just keep deferring til you die. Boom, no more debt!
That’s just immoral.
No. That’s just Democrat.
I did not even know parents could be the name on the student loan.
Parents can take out loans F/B/O the student and hold it in their name, not co-signed, no student liability!