“That extra cash will be a much needed lifeline to cover other bills or necessary expenses for many. But some borrowers plan to spend the money more freely.”
Advocates of student loan forgiveness have told us it is needed because people with this crippling debt are having trouble affording basic things like food and rent.
Yet, according to new reporting, the people who will benefit from Biden’s program are planning to spend the extra cash on vacations and meals in restaurants.
Once again, reality does not match what taxpayers are being told.
After student loan forgiveness, 73% of borrowers plan to spend more on travel and dining out
Any day now, federal student loan borrowers throughout the U.S. could see their balances reduced by up to $20,000 thanks to President Biden’s student debt forgiveness plan. The administration is waiting on a green light from a federal judge to actually start reducing balances, but still says applicants can expect good news in the coming weeks.
While recipients won’t see that aid in the form of a check, any remaining balances will be re-amortized, meaning monthly payments will be recalculated to reflect the new balance. For borrowers, that means monthly payments could drop by up to $300 per month.
That extra cash will be a much needed lifeline to cover other bills or necessary expenses for many. But some borrowers plan to spend the money more freely.
In fact, 73% of anticipated recipients say they expect to spend their debt forgiveness on non-essential items, including travel, dining out and new tech, according to a recent survey from Intelligent.com.
That discretionary spending won’t come guilt-free though. The same percentage of recipients — 73% — say using debt forgiveness funds on non-essentials isn’t the right thing to do.
CNBC: 73 percent of those receiving Biden's student loan forgiveness plan to spend more on dining out, travel pic.twitter.com/mfhtItVwIS
— Tom Elliott (@tomselliott) November 9, 2022
Many people have suggested that Biden’s plan was little more than a bribe to young voters. Well, guess what? It worked.
From the Insider:
Biden’s student-loan forgiveness is at risk. It may have helped stop a ‘red tsunami’ as Gen Z flocked to the polls to save their relief.
If President Joe Biden didn’t enact broad student-loan forgiveness, Republicans may have gotten the electoral wins they were hoping for.
Gen Z may have helped.
Leading up to the midterm elections, the polls were predicting massive GOP victories across the board, allowing them to regain significant control over the House and Senate. But as the results continue to trickle in, it’s become clear that the red wave turned into a ripple, with control of both chambers of Congress too close to call the day after the election.
While it’s difficult to pinpoint what exactly may have caused this shift, opinions of young voters should be taken into consideration. According to the Edison Research National Election Pool exit poll, 63% of voters aged 18-29 supported Democrats, and 89% of Black youth and 68% of Latino youth voted for a Democratic House candidate. With the oldest Gen Zers turning 25 this year, this group includes the youngest Millennials and those Zoomers of voting age.
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