inflationary by raising tuition. there has been a lot of commentary raised about potential inflation effects of debt cancellation. you have to look at debt cancellation but also look at debt restart. the end of the pause, restarting payments. both of those have to be factored in trying to understand the fiscal impact on overall inflation. dagen: once again in april joe biden extended this moratorium on making student loan payments and all in these various extensions of the payment pause has cost $100 billion. that s utter inflation. stimulus checks at a time when inflation was running at 8 1/2%. stimulus checks to rich doctors, lawyers, and investment bankers. also there are people who went to school that don t have
analysis is profoundly off base and the reason she says that is she points to the two plus year moratorium we already had on student debt payment, and she says basically folks have had this money in their pockets for two plus years and so cancelling this student loan debt would not effectively put more money in their pocket right now. how do you respond to that? what the folks are doing is pretending we re going to extend this payment pause forever. and it is true. compared to the extending the emergency era payment it would be disinflationary. that s not the right comparison. the right comparison is compared to repayments starting in about a week as scheduled. this is always meant to be a temporary pause. if it is a permanent pause, it is not student debt, it is student grants. what complicates this picture for the average viewer watching right now is that they re dealing with inflation near a 40-year high, much more expensive groceries, gas has
it will come tomorrow. they re reminding everybody that nobody has paid a single dime on federal student loans since before covid, since the beginning of the pandemic. also, they have already cancelled $32 billion in student debt. so they already had a ton of forgiveness. but more is on the way. yeah. who knows what they re going to do. it s unlikely that president biden says pay up or else. it s more likely that he extends the payment pause or even cancels. whatever happened to pay your fair share? right? that s what the dems have been coming at us for. pay your fair share. what about paying your fair share as it relates to decisions you made in going to college. martha: a great point. there are plenty of jobs out there. right? i m thinking about if the argument were that it was impossible to get a job right now so there s no way you can
these out-of-state corporations don t care about california. but we do. stand with us. student loan borrowers, you play to start making payments again. the current payment pause is set to expire at the end of the month. and president biden has not decided whether to extend the pandemic related freeze on repayments again. but his education secretary says borrowers can expect a decision soon. we know august 31st is the date that many people are waiting to hear something from. we ve been talking daily about this. and i can tell you that the american people will hear within the next week or so. okay. let s discuss how you can prepare with michelle singletary.
that s something we brought up, we have to really focus on. how do we convince families to understand that college is an investment that needs to have a good r.o.i., not just go to the most prestigious and most expensive constitution, the one that will give you the value and economically beneficial to you when you leave college. that s something we have to really focus on and that s my concern about all this discussion about payment pause and what we do forgiveness. what we really need to focus on is reducing the need to borrow and making sure people are getting a real value for their education. also a complicated problem for a lot of these borrowers, many of them most of them never even finished school, right? that is absolutely a huge problem. we look at student loan repayment, one of the biggest drivers of default or real distress in student loan portfolio associated with people who never completed their degree. they don t really have a tradeable economic valuable asset. right?