Watch now as Financials analyst Josh Steiner reminds investors that hundreds of billions of dollars in student loans are potentially coming due if the current pandemic forbearance programs end. Currently, the extensions are set to expire on May 1st. As Steiner explains, this could become a massive negative catalyst in Q2.
“Since the start of the pandemic you’ve had 37 million people forego $195 billion in student loan payments. That’s 50 basis points of GDP per year since the start of the pandemic,” Steiner highlights.
“I would probably take the over on a further extension going into the midterm elections, but what it represents is what would be a significant risk if it were not to be extended.” However, “the extension of it, if that were to be the case, doesn’t improve anything. It just keeps things as they are,” he explains.
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