Gabe Rubin

speaker

468 appearances 13 recordings 1 series first heard Apr 2018 last heard Oct 2023

Gabe Rubin’s voice in public audio — every appearance, attributed to the second.

Trend

recordings per month · last 12 months

No recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.

Appearances

newest first · ▶ plays the moment

WSJ Your Money Briefing · Many Borrowers Aren’t Ready to Resume Student-Loan Payments · 16 Mar 2023 podcast

So either way, around 60 days after the Supreme Court wraps up the case, people with remaining student loans will have to start making payments on those loans, which they haven't done or haven't been required to do since March 2020.

And the difference would be that some people would have their entire loan balance wiped out or would have significantly less money to pay if the program is allowed to go through as opposed to if the Supreme Court strikes it down.

Yeah, so these are households that are really getting squeezed by both high inflation and rising interest rates.

And we see the shift in credit conditions being starkest among these younger consumers who are less likely to have significant savings, are more likely to have student debt.

And borrowers in their 20s and 30s reached 90 days or more delinquency on credit card debts and auto loans at a higher rate in the fourth quarter of 2022 than they were before the pandemic.

And people in these age groups, millennials and Gen Z consumers, are accounting for more spending in the economy, which makes sense given that they continue to get older and account for more of the adult population of this country.

So they accounted for about 30% of spending in 2021, which was up from approximately 25% in 2019, according to the Labor Department.

Yeah, it raises concerns that these younger Americans are less likely to have the savings to tap when their finances are stretched.

And it raises the likelihood that they could default on some of their loans or be late on credit cards and face mounting debt in all sorts of areas of their life, whether that's an auto loan, credit card debts, falling behind on mortgage payments.

So it's definitely a concern for a variety of areas of the economy.

Yeah, certainly.

So the Biden administration has actually made the higher risk of defaults coming out of the payment pause one of their main legal reasons for the mass student debt cancellation program.

And that is the case that they made before the Supreme Court.

Now, on the other side, congressional Republicans say these payments have been paused for three years at this point, and the cost of that pause by not accruing interest and the government not collecting payments has cost well over $150 billion.

So they make the point that the continued payment pause is almost like a mass debt cancellation program in and of itself.

At its core...

Opponents of the mass debt cancellation program simply don't think that the Biden administration has the constitutional ability to decide that because these borrowers may have higher default risks, then they deserve to have all of this debt canceled.

And they believe that that power really only rests with Congress to decide whether to do something like that.

Whereas the Biden administration thinks that their authorities under certain emergency laws that were passed after the 9-11 attacks are perfectly applicable in a pandemic situation.

Thanks for having me.

Showing 61–80 of 468 · page 4 of 24