🗞️🌺 Da End of Da Student Loan Pause: Get Ready fo’ Da Consequences, Brah! 🎓💸🚫
Eh, time fo’ all da kine students fo’ pay up, braddahs and sistahs! Aftah three years of kicking back and chilling wit’ $1.6 trillion in student debt on hold, da time fo’ repayment is coming faster than a wave on da North Shore. Da White House and dem congressional Republicans made a deal, and dat deal says da pau hana on student loan payments gotta pau by Aug. 30, at da latest.
We talking some serious cash, brah. Da pau hana on student debt, which been going strong fo’ mo’ than three years, was like one big wave dat saved borrowers approximately $185 billion. Instead of coughing up dat moola, Goldman Sachs be saying dat borrowers woulda paid it, no joke. So, wat dis mean for our local folks and da economy, you ask? Plenty, braddah, plenty.
Now, lissen up, ’cause dis gettin’ technical. Some fancy research been going on, and dey found out dat dis pau hana on payments not only give people extra money in da pocket, but it also make deir credit scores shoot up. How come? Well, when da pandemic relief programs was flowing like da Wailua River, folks had more cash fo’ da stash and could finally get rid of dem pesky student loan delinquencies on deir credit reports. So, what dey do? Dey go buy cars, houses, and even get dem daily needs usin’ credit cards. But now, guess wat? Dem student debtors gonna get hit wit’ anotha monthly bill right when dey budget already maxed out, braddah! 😱💳
Laura Beamer, dis one smart cookie who studies higher education finance at da Jain Family Institute, said, “It’s gonna quickly reverse all da progress dat was made during da repayment pause, especially for da ones who wen take out new debt fo’ mortgages or auto loans, ’cause dey had da financial room, yeah? Dey wen stop paying deir student loans and wen go on spendin’ spree, like buyin’ new whips and houses.”
But hold up, peeps. Dis pau hana on payments, da one that started back in March 2020 unda da CARES Act, it’s different from da big idea da Biden administration get fo’ forgivin’ up to $20,000 in student debt. We gotta wait fo’ da Supreme Court fo’ rule on dat one, and they goin’ judge if da plan stay within certain income limits. So, dat’s still up in da air, you know?
Anyway, let’s get back to da kine pause on payments. Dis ting wen start ’cause families was struggling like one papule on da nose when da unemployment was skyrocketing. And not just da student loan payments, but da pause wen cover housing, auto, and consumer debt too, ’cause some private lenders wen jump in fo’ help, yeah?
According to da peeps at da Brookings Institution, around May 2021, 72 million borrowers wen put on hold around $86.4 billion in payments. Whoo! Das plenty cash, right? But hey, dis pau hana mostly wen stick around fo’ ’bout 42.3 million people who had student debt, da kine federal one. And you know wat? Da Biden administration wen give ’em nine extensions, just trying fo’ figure out wat to do next, while oddah pandemic aid programs wen expire, yeah?
Let’s talk numbers now. 📊💰
NOW IN ENGLISH
🗞️🌺 The End of the Student Loan Pause: Get Ready for the Consequences, Brah! 🎓💸🚫
Hey there, it’s time for all the students to start repaying their loans! After three years of having $1.6 trillion in student debt on hold, the repayment time is approaching rapidly, just like a wave on the North Shore. The White House and congressional Republicans reached a deal, stating that the pause on student loan payments must end by August 30, at the latest.
We’re talking about some serious money, my friend. The pause on student debt, which has been going strong for over three years, saved borrowers approximately $185 billion. Instead of paying that amount, Goldman Sachs estimates that borrowers would have actually paid it. So, what does this mean for our local folks and the economy, you ask? A whole lot, my friend, a whole lot.
Now, listen up, because things are about to get technical. Some fancy research has shown that this pause on payments not only gives people extra money in their pockets, but it also improves their credit scores. How does that work? Well, when the pandemic relief programs were flowing like the Wailua River, people had more cash to spare and could finally eliminate those troublesome student loan delinquencies from their credit reports. So, what did they do? They bought cars, houses, and even covered their daily needs using credit cards. But now, guess what? Those student debtors are going to face an additional monthly bill when their budgets are already stretched thin, my friend! 😱💳
Laura Beamer, a smart cookie who studies higher education finance at the Jain Family Institute, said, “It’s going to quickly reverse all the progress that was made during the repayment pause, especially for those who took on new debt for mortgages or auto loans because they had the financial flexibility, you know? They stopped paying their student loans and went on a spending spree, like buying new cars and houses.”
But hold on, folks. This pause on payments, which started back in March 2020 under the CARES Act, is different from the big idea the Biden administration has of forgiving up to $20,000 in student debt. We have to wait for the Supreme Court to rule on that one, and they will decide if the plan falls within certain income limits. So, it’s still uncertain, you know?
Anyway, let’s get back to this pause on payments. It all began because families were struggling immensely when unemployment rates were skyrocketing. And it wasn’t just the student loan payments, but the pause also covered housing, auto, and consumer debts because some private lenders stepped in to help, you know?
According to the folks at the Brookings Institution, around May 2021, 72 million borrowers had approximately $86.4 billion in payments put on hold. Wow! That’s a significant amount of cash, right? However, this pause mostly affected around 42.3 million individuals with federal student debt. And you know what? The Biden administration granted them nine extensions, just trying to figure out the next steps, while other pandemic aid programs were expiring, yeah?
So, let’s dive into the numbers now. 📊💰
