Morgan Stanley survey shows 34% of student loan payors think they can't afford resumed payments
Per Business Insider
Research by Morgan Stanley survey reported that 34% of people with student loan debt don't think they can afford payments once it resumes. This comes as only 29% of federal student-loan borrowers said they were confident about being able to afford payments.
Marshall Steinbaum, a Jain Family Institute senior fellow and University of Utah economic professor, gave a statement regarding student loan payments. The statement was in relation to how borrowers were being squeezed out of debt and how it was bad for the macroeconomy.
Steinbaum: "it's just a more onerous way of operating a lending portfolio of trying to collect debt that fundamentally can't be collected and trying to squeeze the borrowers as much as possible in order to make that debt collectible. And that's very bad for the macroeconomy."
37% of borrowers said that in order to pay their student loan debts, they would need to cut back on other areas of spending.
In May, it was reported that the Biden administration forgave $42 billion worth of student loan debt specifically for public service workers.
In November, the Biden administration decided to stop accepting applications for the federal student loan forgiveness plan. This came shortly after a federal judge in Texas rejected the US President's executive action in August to cancel up to $20,000 in student debt for tens of millions of Americans.
See flow at unusualwhales.com/flow.
Other News:
- Biden administration forgives $42 billion student loan debt for public service workers
- The Biden admin has ceased accepting applications for federal student loan forgiveness
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