![A student in a white shirt sits in front of a laptop with his hand on his head.](https://www.uc.edu/news/articles/2023/06/n21176019/jcr:content/image.img.cq5dam.thumbnail.500.500.jpg/1685720052378.jpg)
New York Magazine: Student loan debt pause to end
Lindner economics professor Michael Jones explains potential ramifications
The imminent Congressional budget deal to raise the U.S. debt ceiling included the passage of Senate bill that would end the suspension of student loan debt.
Student loan debt was first suspended in March 2020 with the passage of the CARES Act. Now, unless President Joe Biden vetoes the Senate measure, loan payments are slated to resume soon for 45 million American who have student loans, according to New York Magazine.
Michael Jones, PhD, associate professor-educator of economics and academic director of the Kautz-Uible Economics Institute.
“There’s some concern now that, as those loan repayments restart at the end of August, you’re going to see higher delinquency rates on credit cards and other types of loans,” Michael Jones, PhD, associate professor-educator of economics at the Carl H. Lindner College of Business and academic director of the Kautz-Uible Economics Institute, told New York Magazine. “That is one of the big concerns I think economists are paying close attention to.”
According to a University of California Irvine Student Loan Law Initiative study, the debt pause saw credit scores improve by about 30 points, with loanees saving around $210 a month. However, some of those savings would have been softened by historic inflation.
Read more from New York Magazine.
Featured image at top: Courtesy of Tim Gouw on Unsplash.
Next Lives Here
The University of Cincinnati is classified as a Research 1 institution by the Carnegie Commission and is ranked in the National Science Foundation's Top-35 public research universities. UC's medical, graduate and undergraduate students and faculty investigate problems and innovate solutions with real-world impact. Next Lives Here.
Related Stories
WLWT: Thanksgiving items prices high, but stores offering discounts
November 23, 2022
Thanksgiving dinner will come at an elevated cost for shoppers in 2022. Per the American Farm Bureau Federation, Thanksgiving items are costing just over $64 on average this fall — a rise of almost $11 from 2021.
New York Magazine: Student loan debt pause to end
June 2, 2023
The imminent Congressional budget deal to raise the U.S. debt ceiling included the passage of Senate bill that would end the suspension of student loan debt.
NPR: What would happen if student loans were forgiven?
March 27, 2023
NPR's Marketplace wanted to know what would happen if some or all student loans were forgiven and turned to experts, including University of Cincinnati economist Michael Jones.
Local 12: Valentine’s Day spending hits record high
February 14, 2023
Valentine’s Day costs are higher than ever, Local 12 reported, but a University of Cincinnati economist said most people are still spending.
How student loan forgiveness could affect the economy
March 8, 2023
The Supreme Court's decision as to whether President Joe Biden has the authority to cancel student loan debt will affect the economy and how people think about financing their college education, University of Cincinnati economist Michael Jones said.
Lindner recognizes 2022-23 faculty and staff award winners
April 13, 2023
The Carl H. Lindner College of Business touted its award-winning faculty and staff from the 2022-23 academic year in a reception April 12 at Lindner Hall.
WCPO: UC economist says wages can’t keep up with inflation
March 22, 2022
Multiple disruptions to the U.S. economy are posing problems for consumers, according to Michael Jones, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.
The benefits and downsides for 'forever renters'
May 29, 2024
![Business Insider logo](/content/dam/refresh/uc-news/news-icons/dark/business-insider.png)
A growing number of people expect to rent their entire lives instead of buying a home, which presents potential benefits and downsides for these “forever renters,” University of Cincinnati professors told Business Insider.
Spectrum News 1: Inflation reaches 40-year high
April 13, 2022
A number of factors have caused inflation to reach a 40-year high, but it won’t be a permanent problem, University of Cincinnati economics professor Asawari Deshmukh told Spectrum News 1.
WCPO: Small businesses face challenges
April 19, 2022
As businesses are squeezed by inflation, staffing shortages and supply chain issues, companies are having to adjust, a University of Cincinnati economics professor told WCPO.