Supreme Court Blocks Loan Cancellation

Alright, here is the short, short version typed up as fast as I possibly can, while I wait for my documents at the title company.

In Washington D.C. they have been stretching legislation to lift more than it as designed to since before they built the Congressional building. This time, the Supreme Court decided it was too far.

On a party line vote, Republicans said no, and Democrats said yes. The reasons are moot. It’s time to look at your money.

Student Loan Payments Deferred

Back during the pandemic when everyone was worried the economy was on the verge of collapse with hundreds of thousands of Americans unable to work because their jobs were shut down, the Feds put a pause on student loan payments. It turns out that a lot of people were spending a lot of their after-tax income paying student loans instead of consuming the goods and services that drive the economy. An extra couple hundred dollars a month can do that for you.

The student loan payment pause is ending. I don’t know why Republicans hated the student payments thing so much. Maybe it’s just that they didn’t want people to have something to like about the current President, or what. However, one of the things they insisted on before agreeing to not plunge the world economy into chaos via default was that the student loan pause could not be extended.

So, here we are. You are not getting any of your student loan cancelled, at least right away, and you will have to start paying on your student loans soon.

inflation
I asked Midjourney to generate a depiction of economic inflation

What Happens to the Economy with No Student Loan Relief

As you may recall, the Fed has been fighting inflation by racing up a hill of rate increasing interest rates before finally deciding that maybe it was time to give the economy some time to catch up. The American economy is not a drifting race car, it’s a giant super tanker. No matter how hard you spin the wheel, it’s going to take a while to turn.

Today’s inflation news suggests that it was a wise decision. With inflation dragged down to a crawl, it may very well be that millions of dollars going missing from the economy thanks to consumers paying student loans with money they used to propel the economy could be an even harder break on inflation than the rising interest rates.

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