January 05, 2023
NY Fed Warns of Debt Crunch Coming If Biden’s Student-Loan Plan Fails
Student borrowers in the US are struggling to keep up with other kinds of debt even while college payments are frozen, and a surge in delinquencies is likely if the government’s debt-relief plan fails, according to a new study.
Among borrowers who’d be eligible for President Joe Biden’s forgiveness plan, which is mired in a Supreme Court challenge, there’s been a “stark increase” in delinquencies on credit cards and auto loans during recent quarters, economists at the Federal Reserve Bank of New York wrote in a paper.
Among borrowers who’d be eligible for President Joe Biden’s forgiveness plan, which is mired in a Supreme Court challenge, there’s been a “stark increase” in delinquencies on credit cards and auto loans during recent quarters, economists at the Federal Reserve Bank of New York wrote in a paper.