(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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