With student loans collection set to resume on August 1st, Macro & Financials analyst Josh Steiner and Hedgeye CEO Keith McCullough analyze the potential economic cooling effect that payment plans could cause during #Quad4.
“In terms of the dollar amount, it still sounds like $10,000 as the target,” notes Steiner. “The average student loan payment for someone with a bachelors degree right now is $450 a month and they haven’t made that payment in 2 years.”
“Even if $10k of their loans are forgiven, once that payment resumes effective August 1st (obviously in the vice grip of higher gas, rent & grocery bills), the cooling effect that’s going to have is probably going to more than offset this $10k in forgiveness. Just pointing out the double edged sword nature of the dynamic.”
“$450 is a lot per month,” highlights McCullough. “Especially if you’re rolling the bones on short term YOLO call options or crypto trading.”