Yet another study has been published predicting adverse consequences for the economy as a result of the Supreme Court's decision to strike down President Joe Biden's student loan forgiveness plan.
As a result of the ruling, interest on loans to student borrowers will begin accruing in September. Monthly payments on the loans will resume in October.
It follows an automatic pause on eligible loan payments by the Federal Student Loan administration during Covid. The agency also set interest rates to 0% starting March 13, 2020. With loan payments now restored, the shock will be especially severe for Gen Z adults who graduated during this period, many of whom have never made a student loan payment, as noted in a new analysis by Marcus & Millichap.
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