(TheConservativeNews.org) – 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.
Wednesday, the anchors of CNBC’s “Money Minute,” a segment on “NBC Now” streaming news platform, discussed a recent survey from Intelligent.com. that found 73% of President Biden’s student debt forgiveness anticipated recipients say they will spend the extra income on non-essential items including dining out and travel.
Anchor Deirdre Bosa said, “It could be easy as well for some people to enjoy travel and eating out rather than worrying about the future. One financial coach tells CNBC.com that you should not use the loan forgiveness only for long-term goals because your short-term self might get frustrated.”
She added, “Try to achieve a balance that lets you also invest in your future.”
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.
Many people have suggested that Biden’s plan was little more than a bribe to young voters.
