(Your tax dollars at work...but to what ends?)

From: https://tinyurl.com/y555xbkk (dailycaller.com)

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Student Loan Borrowers Bailed Out By Biden Now Piling Up Mounds Of Other Debt

Hailey Gomez General Assignment Reporter
August 18, 2024 7:46 PM ET

Student loan borrowers who benefited from President Joe Biden's loan
forgiveness are still burdened by their finances as their debt is
continuing to accumulate, according to a Saturday Wall Street Journal
report and a July study.

Biden, who made student loan forgiveness a key promise in 2020, has pushed
forward with the initiative despite the U.S. Supreme Court ruling 6-3 in
late June 2023 to strike down his plan for nearly 40 million Americans.
However, despite the loan relief, interviews with borrowers who have had
their debt eliminated reportedly show that financial stress is still a
major component of their daily lives, as debt from other sources piles up,
according to the WSJ.

A July study by Constantine Yannelis, an associate professor of finance at
the University of Chicago who studies household finance, found that
borrowers have accumulated other forms of debt since having their student
loans forgiven. (RELATED: National Debt Reaches $35 Trillion For First
Time In US History)

Yannelis' research shows that borrowers have seen increases in other types
of debt: auto loans have risen by $230, credit card borrowing by $220, and
home loans have also jumped. Despite having their student loans
eliminated, these borrowers saw almost no change in their credit scores,
which researchers believe could be due to the loan forgiveness recipients
taking out new loans to replace the old ones, WSJ reported.

For example, Kimberly Acquaviva, a University of Virginia School of
Nursing professor, took out roughly $90,000 in student loans during the
'90s to complete her bachelor's, master's, and Ph.D. at the University of
Pennsylvania. While the debt relief eliminated her student loans, she and
her husband pivoted to spending the newly available funds on helping her
stepdaughter pay off her student loans and are planning to also help their
son as well, according to the WSJ.

"It took some of the sandbags off of my back. But it was not, `Oh yay, now
we can do a fun thing.' It was, `OK, now I'm not in as bad a situation as
I could have been,'" Acquaviva told the outlet. "What has changed isn't so
much our quality of life but our sense that we have some choice of how to
use that $900 a month."

The Biden administration has forgiven $1.2 billion in student debt for
35,000 public service workers as of July. In addition, the administration
has provided $168.5 billion in relief to 4.76 million student loan
borrowers in July, according to the Department of Education.
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-- Sean

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