I occasionally take a look at the if it bleeds it leads station; CNN. Today I was wondering if they'd be camped out with the Proud Boys looking for some action. Nothing there but I did come across this article which discusses an issue I've been discussing here for some time.
The dreaded return of student debt payments
Beyond the high cost of living, Bank of America said many younger Americans are also likely bracing for the return of a significant monthly expense: student debt.
The bipartisan debt ceiling deal included a provision that specifically prevented the Biden administration from extending the pause on federal student loan payments.
The student debt freeze, in effect since March 2020 when the Covid pandemic erupted, is expected to conclude by the end of August.
That is particularly painful to younger consumers. Americans are sitting on $1.6 trillion of student debt, according to the New York Federal Reserve, and the vast majority of that student debt is held by those under the age of 49.
For millions of Gen Z and Millennials, the return of student debt payments will mean less money for spending on restaurants and vacations.
Some consumers may be starting to pull back on spending ahead of that change, Tinsley said: “It’s coming down the tracks pretty fast now.”
The stock market is a device for transferring money from the impatient to the patient. - WB
