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Economy
See other Economy Articles

Title: The Great Student Loan Nonpayment Boondoggle Is Over and Household Spending Is About To Collapse
Source: LRC
URL Source: https://www.lewrockwell.com/2023/06 ... spending-is-about-to-collapse/
Published: Jun 2, 2023
Author: Tyler Durden
Post Date: 2023-06-02 00:37:51 by Charles_Byrd
Keywords: None
Views: 121

In the small print detailing the end of the debt ceiling melodrama which, as we explained, is a farce as it boosts inflation-adjusted spending contrary to Republican promises, there was some actual news: the great student loan boondoggle is about to come to a screeching halt, after a three year “emergency pause” which redirected tens of billions in dollars away from mandatory student loan repayment to other forms of discretionary spending.

According to Goldman, the agreement announced on Saturday between uniparty leaders Joe Biden and Kevin McCarthy titled hilariously the “Fiscal Responsibility Act”, prohibits the Biden Administration from extending the pause on student loan repayments in place since March 2020, even if it does not block the Administration’s student loan forgiveness plan, which would wipe out up to $20,000 in federal loans per borrower and is currently being weighed by the Supreme Court (the plan was announced last year but has not yet implemented).

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