Stephanie Pomboy: Will Student Loan Defaults Trigger The Next Credit Crisis?

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May 28, 2025

Stephanie Pomboy, a seasoned macro and market analyst, dives into the urgent topic of student loan defaults and their potential to spark a credit crisis. She discusses the challenges borrowers face as repayments resume, particularly for low-income individuals, and the impact on consumer credit. Pomboy also hints at a looming corporate credit crisis due to interest rate hikes and delinquencies. Additionally, she shares insights on investing in gold and silver, while contemplating the true value of a college education in today's economy.

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INSIGHT

Student Loan Repayments Expose Consumer Stress

Student loan repayments restarting are exposing consumer credit stress unnoticed before.
This consumer weakness compounds existing corporate and financial sector vulnerabilities.

INSIGHT

Student Loans Trigger Debt Domino Effect

Restarting mandatory student loan repayments acts like a domino knocking over other consumer debts into default.
This triggers a credit tightening cycle that could slow economic growth significantly.

INSIGHT

High Bond Yields Worsen Debt Stress

Bond yields remain stubbornly high due to fiscal deficits despite recession fears.
Without relief on interest rates, corporate and consumer debt stress will intensify.

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Student loans are now officially back in repayment…and millions of American borrowers are becoming delinquent.The credit scores of these millions are getting rated downwards, further impairing their ability to borrow more or service the debts they already have.Could student loan defaults prove to be the fateful domino that triggers the next US credit crisis?Macro & market analyst Stephanie Pomboy shares the latest investing trends that have her attention + takes live Q&A from the viewing audienceWORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.com#studentloans #debtcrisis #credit __________________________________________________Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce & distribute educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.IMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2025 Thoughtful Money LLC. All rights reserved.