A common misconception spread by mainstream media is that lower income earners were the only U.S. demographic that caught a break during the 46-month suspension of student loan payments. While it’s true that group will be hit hard when payments resume this fall, they’re far from the only ones.
“What gets glossed over is the vast majority of student loans actually are held by much higher-income people, but not necessarily people who are rich,” explains Hedgeye analyst Josh Steiner in this clip from The Macro Show.
“We expect a significant slowdown in spending among those cohorts as a result of those resumption in payments.” Of course, graduates with advanced degrees make more money, but their student loan balances are often equal to (or even surpass) their annual median salaries.
“Doctors and dentists have between $175K-$200K in student loans and their median income is between $150K-$175K,” Steiner adds. “Lawyers and pharmacists have between $110K-$130K in student loans and they have income in similar ranges. Lowly bachelor’s degree holders have around $25K in student loans with a median income around $60K. So very clearly, there’s a strong relationship between the amount you earn as a result of the degree you obtain and the amount of student loan debt you hold.”
Watch the full clip above.
