Student Loan Crisis Threatens US Economy | JQJO

The US faces a looming economic crisis stemming from the student loan debt crisis. Nearly 43 million Americans owe $1.6 trillion, and recent policy changes have exacerbated the problem. The end of pandemic-era payment pauses and stricter collection policies have caused credit scores to plummet for millions, impacting mortgages, car loans, and credit card applications. Proposed GOP budget cuts to student aid further threaten economic stability, while the private student loan industry stands to benefit. Economists warn of significant negative economic consequences if the situation isn't addressed.