Since March 2020, President Biden has suspended student loan payments for those in student loan debt. Since the middle of 2022, the payments were intended to start back up on January 1, 2023. Today, he extended them - Again - all of the way out to June 2023.
Do you really think he is doing anyone any favors? Additional time creates more out-of-sight, out-of-mind. This pushes the problem out into the future. Instead of taking a bad idea and making it worse, he should concentrate on improving the student loan program. How about transforming it into a constructive program versus a program that creates a borrower’s credit trap?
We can only speculate on the % of student loan borrowers who are going to struggle to make a payment that they haven’t had to make now for almost three years. I, unfortunately, would bet it is uncomfortably high. Keep in mind that inflation has stretched budgets way beyond capacity. That money reserved for student loan repayments is probably going to pay for the increase in prices created by inflation.
Maybe he feels remorse for his student loan forgiveness program blowing up in his face. As he stares at his record-low approval rating, he thinks – how can I make it up to those people who were counting on me to wipe out at least $10,000 of student loan debt? I will just extend the student loan debt “holiday.” This is just one bad idea after another.
Oh well…politicians will be politicians.
On a brighter note, Happy Thanksgiving to each and every one of you. I am truly thankful to everyone who reads my random thoughts and listens to my radio show. Just remember, be grateful for everything in your life. Blessings are always there if we look hard enough!
Check out Bob's teaching videos at youtube.com/user/prudentmoney to learn more on intentional financial stewardship.
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