73% of borrowers of student loans said they would increase their spending on travel and other non-essentials after receiving debt relief.

A recent survey conducted on the loan forgiveness program announced by Biden claimed that 73% of loan borrowers who have registered for the program will spend the money on non-essentials like alcohol, drugs, vacations, or maybe smartphones. 

The survey further revealed men were more inclined to spend money on non-essentials as compared to women. 

  • The number of men were- 84% 
  • The number of women were- 65% 

However, the other 73% of the borrowers have a different perception as they said spending money on non-essentials is the wrong thing to do. With the extra money they will have after receiving student loan forgiveness, about 52 percent of respondents said they are “likely” or “very likely” to buy new clothes and accessories. Another 46 percent said they might use the money for a vacation, and another 46 percent said they might use it for dining out.

We also have 86% of men and somewhat 70% of women who said that they would spend less and save more money. The survey also predicted the impact of student loans on the lives of borrowers to which 9% said they were not very negatively hampered, 32% said they were somewhat negatively hampered and 28% said they were extremely hampered. 

Numerous students in the United States reported having anxiety and depression as a result of their student loan debt, according to a second survey done by the online education platform ELVTR. Findings show that 54% of borrowers say their debt has negatively impacted their mental health.

White House press secretary Karine Jean-Pierre said that the Department of Education will maintain information on the 26 million borrowers whose applications for the debt relief program have been examined, of which 16 million have already been granted after it has been blocked and called unlawful by the US district court. 

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