Student loan payments expected to pull billions of dollars out of local economy

When federal student loan payments resume this fall, they are expected to pull as much as $71 billion in otherwise disposable income out of the economy every year, $5.3 billion of which will come from Arizona.

“It’s a drag, but it’s a very modest one at that and it’s really not enough to derail the economy,” Yaros said, noting that the payments are projected to reduce personal consumption expenditures by 0.2% next year. Biden, who campaigned on a promise of broad debt relief for student borrowers, has since responded with alternative plans that his administration hopes will stand up to congressional and Supreme Court demands.

He estimated the average individual monthly student loan payment in Arizona will be around $500, or about $6,000 per year. With a median Arizona family income of $75,000, that means borrowers will put roughly 8% toward repayments. By comparison, the Phoenix-Mesa-Scottsdale area was highest in Arizona, at $3,749 student debt per capita, followed by Flagstaff, at $3,274. Yuma had the lowest debt per capita in Arizona, at $1,675.

“Younger people are trying to save up for large purchases, so it could have effects on the housing market where people who previously were trying to save up money for a down payment are instead going to have to pay back their debt obligations,” Heimer said.

Education Education Latest News, Education Education Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

School bus aid fired and investigated after assault on student goes viralThe video shows a Conroe ISD bus aid beating a 17-year-old Conroe high school student in the head and knocking him to the ground. All the while, while aboard that school bus, other students were watching.
Source: News4SA - 🏆 251. / 63 Read more »

Back to School: Making healthy habits for your student's return to the classroomWith schools across central Texas beginning the new school year in the coming weeks, many stress the importance of establishing healthy habits to ensure success in the classroom for your students.
Source: fox7austin - 🏆 594. / 51 Read more »

What you need to know with the federal student loan payment freeze ending Aug. 31After more than three years, the pause on federal student loan payments will end on Aug. 31. Interest will start accruing again on Sept. 1. The first payments will be due in October.
Source: komonews - 🏆 272. / 63 Read more »

Biden's student-debt relief measures keep ending up blocked in courtInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Millennial who paid off 6-figure student loans shares budget templateA millennial who's paid down $190,000 in student-loan debt shares the budget template he created and why it's effective: 'You're forced to see what's going on'
Source: BusinessInsider - 🏆 729. / 51 Read more »

Student goes from homeless to graduateAt Dallas ISD's summer high school graduation ceremony, Sampson could remember the time when he never thought he would cross that stage.
Source: wrtv - 🏆 598. / 51 Read more »