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1 IN 3 FEDERAL STUDENT LOAN BORROWERS SPENT MONEY THEY THOUGHT THEY WOULDN’T HAVE TO PAY BACK

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Napoleon

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Reason number 10,985,166 student loan forgiveness should not be a thing is what people have actually been doing with that money since Biden promised they’d never have to repay their loans.

“The plurality of borrowers (44%) say they spent the money on retail items, while 37% say it was used to pay off other debts, 33% home and auto repairs, and 30% rent payments.

Additionally, 20% say they spent the money on vacation, while 16% spent it on childcare, 13% on a down payment for a car, and 10% on a down payment for a home.

Others say they used the money for alcohol/drugs (8%) and gambling (7%).”

1 in 3 federal student loan borrowers spent money they thought they wouldn’t have to pay back - Intelligent

An Intelligent.com survey found that three-quarters of borrowers were confident they would receive the relief they qualified for under Biden’s plan.
www.intelligent.com
 
That was a stupid thing for them to do, but also a stupid argument against student loan forgiveness

Home ownership, necessary repairs, rent, childcare, home ownership, etc? It's good for multiple reasons when people spend money on those sorts of things. Inability to spend money on those things is the kind of thing that can keep people down, helping prevent them from paying back the loans. Need a car for work? Well you need a car then. Can't go to/from a homeless encampment to your job? Well, you need a residence. Etc.
 
Maybe, but it’s fraud when you borrow that money from the government under the pretense of continuing education.
 
It seems that a lot of poor judgement didnt end with college choices, major/profession choices, and graduating college.
 
Napoleon said:
Maybe, but it’s fraud when you borrow that money from the government under the pretense of continuing education.
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But they might have borrowed the money originally with the intention of paying it off. If someone steps in and offers to pay whatever outstanding debt I have, I'm tempted to take them up on their offer. The mid-life adult in me knows to ask, what's the catch, but this is a younger population.
 
Napoleon said:
Maybe, but it’s fraud when you borrow that money from the government under the pretense of continuing education.
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Well, if you jail them for fraud, then those loans are never going to get paid back.

I would also point out, money borrowed fraudulently is subject to what is known as a non-dischargeability proceeding in bankruptcy. So even if student loans were dischargeable in bankruptcy, if the lender can show the bankruptcy court that the student borrower defrauded them and intentionally used the money for non-education purposes, the bankruptcy court can deem that amount barred from being discharged through bankruptcy.
 
I’d settle for barring them from receipt of any public assistance for life. At least then if the government lends someone $20 and never sees them again it’s probably worth it.
 
1. They will probably never have to repay those loans.

2. The Dems will probably have smashing victories next year, so they will make sure that the taxpayers pay off those loans.
 
TheParser said:
1. They will probably never have to repay those loans.

2. The Dems will probably have smashing victories next year, so they will make sure that the taxpayers pay off those loans.
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Maybe, but Congress will have to pass the appropriate legislation to allow these loans to be forgiven.
 
Felis Leo said:
Maybe, but Congress will have to pass the appropriate legislation to allow these loans to be forgiven.
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Oh, yes!

And the Dems should be able to take both houses.
 
Napoleon said:
Maybe, but it’s fraud when you borrow that money from the government under the pretense of continuing education.
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You didn't read that article correctly. It makes no claim that anyone spent student loan money on vacations or drugs.

The article states that 1 in 3 students spent money that they would not have spent, had they known their loans would not be forgiven.
 
All that money moving through the economy instead of being used to pay back loans probably boosted the economy a bit.
 
Let’s follow that interpretation. You’re saying these people have $10,000 for booze and shopping sprees but A) they need loans for education and B) they can’t repay them?
 
So 2/3rds of student loan borrowers were responsible, and of those that spent money in expectation of forgiveness, they put it back into the economy--in most cases for reasonable/responsible choices.

I didn't see anything that suggested they were all going to file for bankruptcy now either. Seems like just a bunch of trash talking to demonize a political party, without any regard for who gets screwed over in the process. Politics as usual.
 
No. The plurality took out student loans they never intended to repay and spent the money on things that aren’t education. That is not responsible. That is fraud.
 
Napoleon said:
No. The plurality took out student loans they never intended to repay and spent the money on things that aren’t education. That is not responsible. That is fraud.
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Dude, that's not remotely what the study found.

These are college students. Duh.
 
Napoleon said:
No. The plurality took out student loans they never intended to repay and spent the money on things that aren’t education. That is not responsible. That is fraud.
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Sources?
 
Napoleon said:
Let’s follow that interpretation. You’re saying these people have $10,000 for booze and shopping sprees but A) they need loans for education and B) they can’t repay them?
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People don't start paying off their student loans until (at minimum) six months after they're done with school.

The people interviewed for your article took out their loans years, if not decades ago.
 

In point of fact, they should be allowed to file bankruptcy on those debts. Chapter 13 repayment bankruptcies, specifically. That is what the old bankruptcy code allowed, and it is not like the United States was some horrific Hell-scape pre-2005 before the BAPCPA Bankruptcy Code went into effect.
 
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