Third Of Student Borrowers Spent Money They Didn’t Have, Expecting Loan Relief

Now, let’s say the federal government was going to give you $10k or $20k, depending on your type of mortgage, to help reduce you loan amount. You owed $100k, now you owe $90k. You still have your monthly payment, though, so, you don’t actually have $10k/$20 (regular student loan/pell grant loan) to spend, right? That money is never in your hands, right?

A third of student borrowers spent money they thought would be forgiven: poll

More than a third of student loan borrowers spent money they otherwise would not have when they believed a portion of their debt would be forgiven by the Biden administration, according to a new poll.

Most borrowers surveyed by Intellingent.com were confident they would receive some student debt relief as part of the Biden administration’s plan to forgive at least $10,000 for federal borrowers and up to $20,000 for those who received a federal Pell Grant while in school.

The Supreme Court struck down the president’s forgiveness plan at the end of June.

You mean Brandon’s bribery for votes scheme, which would be paid for on the backs of the working and middle class for upper middle class and rich folks

The survey conducted from July 6 to July 10 measured the responses of 977 respondents who qualified for Biden’s student loan forgiveness program

Among borrowers who spent additional money expecting some debt relief, 9 percent spent between $5,000 and $7,501 extra, while another 17 percent spent $5,000 more than they would have had they not expected forgiveness, the poll found.

Borrowers used what they believed would amount to extra money in their pockets on a range of items, though 37 percent said they paid off other debts. Others used the funds on home repairs and rent payments. The survey conducted from July 6 to July 10 measured the responses of 977 respondents who qualified for Biden’s student loan forgiveness program

About 20 percent of borrowers polled said they spent the money on vacation, while fewer than 10 percent said they spent it on alcohol and drugs or gambling.

So, they spent money they didn’t know if they would actually get it, and wouldn’t actually get it if Brandon’s plan was allowed to stand because it would go directly to the loan companies on other things, including vacations and other debt, which is why they’re in this bad situation in the first place. They would not have had extra money now, just maybe in the future.

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17 Responses to “Third Of Student Borrowers Spent Money They Didn’t Have, Expecting Loan Relief”

  1. Professor Hale says:

    Since the government backs student loans, no one is overseeing the students don’t overborrow. If you went into a bank for a loan for a new car, they would demand that the car be worth at least as much as you were borrowing. Even a VA backed loan for a house, the VA demands an appraisal to ensure the house is worth at least as much as you are borrowing. If anyone at all were doing that for student loans, there would be a lot fewer students loans, VERY few student loans for garbage degrees, and fewer students in over their heads with student loans. At the very least, government backed student loans should be tied to government bureau of labor statistics forecasts for skilled labor demands in the 5-10 year timeframe. There are small communities that pay for medical school tuition in exchange for getting a doctor in their town. There were businesses that would pay for tuition for students to learn COBOL in advance of expected Y2K crash. No one has ever said, “hey, I think we need more college degrees in race and gender activism next year”.

  2. st says:

    Blaze Media Presents: The Summit, hosted by Tucker Carlson – Live Stream of GOP presidential candidates in Iowa

    https://commoncts.blogspot.com/2023/07/blaze-media-presents-summit-hosted-by.html

  3. UnkleC says:

    When my son was getting near high school age, we discussed his higher education. I made him a promise that if he got into a reputable school, in a worthwhile degree program, I would pay for it. If he wanted to do something silly, I would pay for truck driving school instead. Want to know what a mechanical engineering degree from a premium private university costs? A lot. We told him that all he owed us was grandchildren.
    It’s around 18 years later, he’s successful, also has 2 advanced degrees, and his mother loves her grandson. College debt paid and no pink hair. No loans and I go to him for financial advice on occasion.

  4. Elwood P. Dowd says:

    An average of $28,950 owed per borrower in US

    (One of our kids had over $250,000 debt for professional school! Paid off.)
    (Another had $65,000 for Bachelors. Paid off.)
    (Youngest, now a scientist with a grad degree had no debt. The gubmint pays for most graduate “hard” science programs).
    Mrs Dowd and I both worked our way through college so had no loans. (Also had an athletic scholarship).

    92% of all student debt are federal student loans

    • drowningpuppies says:

      Although this may be hard for you to comprehend, the article is not about you, chubby.

      #RimjobThePedoNarcissist
      Bwaha! Lolgf https://www.thepiratescove.us/wp-content/plugins/wp-monalisa/icons/wpml_cool.gif

      • Elwood P. Dowd says:

        Since methmouth didn’t even finish high school, the concept of education loans flies over his head.

        #DeepThroatTheUneducatedPedo

        • drowningpuppies says:

          Has anyone ever pointed out how gauche it is to brag to strangers about how much money one has spent on educating one’s children? Or anything else really.
          Must be that inbred hillbilly DNA or something, hey chubby?

          #RimjobNarcissisticPerv
          #CletusLookAtHowMuchMoneyIveSpentASchoolin’ThemYoung’uns
          Bwaha! Lolgf https://www.thepiratescove.us/wp-content/plugins/wp-monalisa/icons/wpml_cool.gif

    • James Lewis says:

      Dear Elwood:

      Given that your education was as described…. Where did it fail???

      • Elwood P. Dowd says:

        How was my education described?

        • L'Roy White says:

          How was my education described?

          “Mrs Dowd and I both worked our way through college so had no loans.”

          Obviously as a college education, why would you ask?

          “(Also had an athletic scholarship).”

          Obviously, with that svelte Greco-Roman physique of yours athletics are a given.

          • Elwood P. Dowd says:

            Mr White,

            Do you object to poor, conservative kids working their way through college?

            Not everyone grows up in a white enclave with a billionaire daddy. Some of us kids grew up dirt poor. I was just another hillbilly kid from a Missouri hill family – 7 kids. Our town DID have a sizable Negro population (it was the 50s, 60s… before the terms African-American or Black were widespread). Being from the poor side of town we lived on the border of one of two “niggertowns”.

            Although my parents were as racist as the next white 50s family, my brothers and I were immersed in public schools with black kids and families and I couldn’t help but notice they were just people like we were. Even in the 50s and 60s our elementary schools were integrated! We had classes and lunches with, walked to and from school with and played softball and basketball with Negro boys and girls. Two of our best softball players were girls (Marilyn-black, Joetta-white)! Same with our jr high and high schools. Black and white kids playing with and against each other!

            No doubt, Donald Trump and I have let ourselves go in our 70s. We’re the same height and weight! Tubby and Chubby. Don and I are both upset that you don’t approve!

            In jr high and high school I was a quarter-miler (before meters were invented) and long jumper (used to be “broad” jump), and was pretty good for a white boy (3rd in state – bested by black kids from Kansas City and St Louis!!). I played football (1 year – injured) and basketball (4 years) in high school, but not a standout.

            Mrs Dowd and I married at 19 in college and here we still are over 50 years hence doing the best that we can. We’ve always worked and worked hard, reared our kids who are all doing OK. Our goal was to have them support themselves and no felonies! Score!!

            I’m not ashamed of my life, and do recognize the fact that growing up white was and is easier than growing up black in America.

            The US has had, and still has problems, but in our opinion few viable solutions are coming from nuConservatism (MAGAtism), to us a social movement driven by hatred and a lust for control.

            As a nation we have an economic/social system that thrives of divisiveness – as long as “We, The People” fight and argue, the wealthy elites of both the right and left profit!!

  5. […] Pirates Cove has an interesting poll […]

  6. […] Third Of Student Borrowers Spent Money They Didn’t Have, Expecting Loan Relief […]

  7. ruralcounsel says:

    People who spent money in anticipation of student loan forgiveness are illustrating the subpar financial mentality of someone who should never have received a student loan in the first place.

    • L.G.Brandon!, L.G.Brandon! says:

      Actually they’re just illustrating how well they’ve been trained by Democrats over the years and how they’ve come to expect something for nothing.

    • Professor Hale says:

      It is a widely known practice for students to finance their lifestyle on their student loans. Thus, everyone can afford Spring Break. This highly skews such statistics as “average student loan amount”. If some politician raises the idea of loan forgiveness, why wouldn’t they take nicer vacations and let someone else pay for it?

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