June 10, 2021

DISPATCHES FROM THE EDUCATION APOCALYPSE: Millions Will Have to Start Paying Off A Certain Debt Again…And I’m Sure Libs Will Have a Meltdown.

For millions of Americans, there’s an unwelcome side of the return to business-as-usual after the pandemic: They’ll have to start repaying their student loans again.

More than 40 million holders of federal loans are due to start making monthly installments again on Oct. 1, when the freeze imposed as part of Covid-19 relief measures is due to run out. It covered payments worth about $7 billion a month, the Federal Reserve Bank of New York estimated. Their resumption will eat a chunk out of household budgets, in a potential drag on the consumer recovery.

Americans now owe about $1.7 trillion of student debt, more than twice the size of their credit-card liabilities. Politicians recognize it’s not sustainable. Yet for all the talk of loan forgiveness during last year’s election campaign — including from President Joe Biden, who promised to write off at least $10,000 per borrower — there’s been no progress toward shrinking the pile.

As Matt Vespa writes, “There’s going to be a tantrum over this and the usual suspects, like Warren, will probably make their case, but no one really cares. If you see whose debt you’re paying off, the white college liberal who peddles critical race theory, that’s bound to create more issues with voters. Talk about subsiding the poisoning of your own well. Even hardcore Democrats like James Carville noted last year why this is a dumb idea.”

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.