New York Magazine: Student loan debt pause to end
Lindner economics professor Michael Jones explains potential ramifications
The imminent Congressional budget deal to raise the U.S. debt ceiling included the passage of Senate bill that would end the suspension of student loan debt.
Student loan debt was first suspended in March 2020 with the passage of the CARES Act. Now, unless President Joe Biden vetoes the Senate measure, loan payments are slated to resume soon for 45 million American who have student loans, according to New York Magazine.
Michael Jones, PhD, associate professor-educator of economics and academic director of the Kautz-Uible Economics Institute.
“There’s some concern now that, as those loan repayments restart at the end of August, you’re going to see higher delinquency rates on credit cards and other types of loans,” Michael Jones, PhD, associate professor-educator of economics at the Carl H. Lindner College of Business and academic director of the Kautz-Uible Economics Institute, told New York Magazine. “That is one of the big concerns I think economists are paying close attention to.”
According to a University of California Irvine Student Loan Law Initiative study, the debt pause saw credit scores improve by about 30 points, with loanees saving around $210 a month. However, some of those savings would have been softened by historic inflation.
Read more from New York Magazine.
Featured image at top: Courtesy of Tim Gouw on Unsplash.
Next Lives Here
The University of Cincinnati is classified as a Research 1 institution by the Carnegie Commission and is ranked in the National Science Foundation's Top-35 public research universities. UC's medical, graduate and undergraduate students and faculty investigate problems and innovate solutions with real-world impact. Next Lives Here.
Related Stories
Two UC-backed startups score $200K each from state
December 23, 2025
Innovative startup ventures TapIn and Saturn Sports rose from the UC Venture Lab to receive $200,000 each in funding through Ohio Third Frontier grants.
Supporters give generously to the Bearcats Pantry and Resource Center
December 22, 2025
Supporters gave generously to the Bearcats Pantry and Resource at the University of Cincinnati during two fundraisers: the Crosstown Foodout and Giving Tuesday.
Fusion reactors may be key to uncovering dark matter
December 22, 2025
Yahoo! News highlights a new study by University of Cincinnati physicist Jure Zupan that explains how fusion reactors might create subatomic particles associated with dark matter.