The Supreme Court's rejection of Biden's student-loan-forgiveness plan will make a looming economic slowdown even worse
The Supreme Court finally handed down its decision on President Joe Biden's student-loan forgiveness, dealing a major blow to millions of federal borrowers.. This means that millions of federal borrowers are now set to resume student-loan payments in October — with interest beginning to accrue again in September — without a reduction to their balances.
. Much of the worry is around what the restart will do to consumer sentiment and spending. With inflation still historically high, many experts are worried that a spending slowdown could portend a broader economic slowdown and possible recession.on CNBC in early June that restarting student-loan payments after an over three-year pause will strain consumers' wallets, although he stopped short of forecasting a full-blown downturn.
"This would be a sizeable shock, and it would probably have knock-on effects to other categories of debt as well," he added. This repayment is unprecedented, so it remains to be seen how exactly the economy will respond to the transition — and how effective the Education Department can facilitate a return to repayment. As Politico reported on Thursday, the department hasshould they miss payments, ensuring their credit reports will not take a hit.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Supreme Court strikes down affirmative action in college admissionsThe Supreme Court on Thursday outlawed consideration of race as a factor in college admissions, arguing that admissions programs at Harvard University and the University of North Carolina violate the equal protection clause of the 14th Amendment.
Read more »
Bay Area leaders react to affirmative action banCalifornia could offer a preview of what's to come across the country.
Read more »
Fashion School Leaders Express Concern Over Supreme Court Affirmative Action DecisionThe U.S. Supreme Court decision Thursday to establish new limits on affirmative action programs, essentially ending the consideration of race in college admissions, caused concern among fashion design school leaders.
Read more »
FREE FOR ALL: SCOTUS to decide fate of student loan handout, shipping giant strike 'imminent' and more top headlinesFOX NEWS FIRST: SCOTUS to decide fate of student loan handout, shipping giant strike 'imminent' and more top headlines
Read more »
SCOTUS ruling prompts fear, criticism from LGBTQ community leadersLGBTQ+ advocates, and the dissenting Supreme Court judges, fear the recent Supreme Court ruling on free speech has opened the door to encourage discrimination.
Read more »
Student loan payments set to resume soon regardless of SCOTUS rulingFederal student loan payments and interest accrual are set to resume soon after a three-year pause regardless of how the Supreme Court rules on President Biden's loan forgiveness plan.
Read more »