A sharply divided Supreme Court has ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loan debts for millions of Americans.
Why does this make it harder for the poor to access higher education? A debt forgiveness will make current debtors less burdened but will probably make it more expensive for new applicants. Isn’t it the other way around?
Relieving debt for the poor would allow them to spend their money on other things, or save it. Best case scenario, they’re able to support their kids’ educations and help break the generational cycle of poverty.
I believe he’s referencing the decision on the Harvard affirmative action case, not the student debt relief decision. Supreme Court has been busy this week!
Honestly, this decision wouldn’t probably impact future college attendees. But, there are other changes coming to federal borrowing that likely will. Income based repayment is being restructured and it’s looking pretty good.
However, this will probably hurt the economy. A lot of people are about to hit repayment at a period of high inflation. It’s not a great economy. And, if a lot of people decide to ignore their student loan bills a la 2008 financial crisis, were in for a global economic doozy.
I assume the second graph is basing inflation on CPI as well and if I’m not mistaken that would mean dollars spent on mortgages are equivalent to dollars spent on rent.
I would argue that as home ownership goes down inflation would become more impactful as you do not build wealth with rent but can with a mortgage.
It will impact future college attendees insofar as being more poor impacts your chances of going to college. It won’t directly impact future college attendees, but there is a knock on effect which will to some extent.
Chances are loan forgiveness would push a conversation regarding tuition fees in general, and would ultimately make university free / affordable instead.
Why does this make it harder for the poor to access higher education? A debt forgiveness will make current debtors less burdened but will probably make it more expensive for new applicants. Isn’t it the other way around?
Relieving debt for the poor would allow them to spend their money on other things, or save it. Best case scenario, they’re able to support their kids’ educations and help break the generational cycle of poverty.
I believe he’s referencing the decision on the Harvard affirmative action case, not the student debt relief decision. Supreme Court has been busy this week!
Honestly, this decision wouldn’t probably impact future college attendees. But, there are other changes coming to federal borrowing that likely will. Income based repayment is being restructured and it’s looking pretty good.
However, this will probably hurt the economy. A lot of people are about to hit repayment at a period of high inflation. It’s not a great economy. And, if a lot of people decide to ignore their student loan bills a la 2008 financial crisis, were in for a global economic doozy.
The US has historically low unemployment, but real wages have stagnated for more than 50 years.
The economy is actually pretty great – for those at the top. Not so much for those doing the real work:
I assume the second graph is basing inflation on CPI as well and if I’m not mistaken that would mean dollars spent on mortgages are equivalent to dollars spent on rent.
I would argue that as home ownership goes down inflation would become more impactful as you do not build wealth with rent but can with a mortgage.
It will impact future college attendees insofar as being more poor impacts your chances of going to college. It won’t directly impact future college attendees, but there is a knock on effect which will to some extent.
Chances are loan forgiveness would push a conversation regarding tuition fees in general, and would ultimately make university free / affordable instead.
Maybe.