I'm not heartless- BUT PLEASE HAVE PEOPLE PAY THEIR STUDENT LOANS

The student loan pause has been extended- AGAIN. Please stop!  

Inflation is the biggest issue of today.

How do we stop inflation?  

Take money out of the economy.

The Fed is Raising rates- and taking away the punch bowl

The Fed is reducing their bond holdings- and private entities will pick up the slack and reduce money in the economy

Why don't we do the simple thing and have people pay their student loans?

This will take money out of the economy.

Some numbers here.

This pause has cost the Federal Government $95+ Billion in lost interest - MONEY THAT WAS ADDED TO THE ECONOMY, through consumer spending

There is $1.75 Trillion US Student loan debt

46 million Americans have student loan debt

the Average monthly student loan payment is $300

Unemployment of college graduates is 2%, way under the 5.2% for those who only graduated from HS.

So essentially we are letting the rich/employed folks off the hook instead of making them pay.

If the 46 million people started paying $300/month that would take $13,800,000,000 That is Thirteen Billion Eight Hundred Million a month out of the economy.

Let's just take Central MA- imagine there are 5,000 students who stopped paying their student loans of $300 each.  That is $1,500,000 a month that has been artificially added to the economy on top of stimulus checks, PPP loans and other government largess.

Is there a wonder why housing prices have risen so much?

This may not solve inflation, but it will make a big dent.

And please do not forgive student debt!!!!!  People need to be held responsible for their personal economic choices.  

Currently when we keep extending the pause in student loans, borrowers are making poor economic decisions with the hope that they will be forgiven.  They need to face the reality that they should pay their debts and spend accordingly.