Are You Seeing a Ripple Effect of Student Loan Debt?

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

In recent years, wages for college graduates have not kept up with inflation. A study from the Federal Reserve recently found that the number of people who could be delinquent on their student loan payments when they restart could potentially surpass the 15% that were before the pandemic. And we're seeing that, especially in younger generations, less people are going to college now because they've seen this play out.

President Biden’s plan to forgive federal student loan debt for millions of Americans has been frozen since a handful of Republican-led states sued to stop it. They argue the president doesn’t have the power to wipe away billions of dollars of debt on his own. It’s now up to the US Supreme Court to decide if they’re right.

Bloomberg Supreme Court correspondent Greg Stohr joins this episode to talk about the arguments on both sides, and where the 6-3 conservative majority might come down. And personal finance reporter Claire Ballentine explains what happens next for Americans with student debt if the court upholds Biden’s plan–or knocks it down.