Student Loan Forgiveness Fails to Deliver Financial Relief: Borrowers Still Struggle with Debt
Debt Continues to Pile Up: How Borrowers Are Using Student Loan Forgiveness to Fund Other Expenses
According to DailyCaller, Despite having their student loans forgiven, many borrowers are still struggling with financial stress. According to a recent report by the Wall Street Journal, borrowers who have had their debt eliminated are still burdened by their finances, with debt from other sources piling up. This is due to a lack of significant 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.
Kimberly Acquaviva, a University of Virginia School of Nursing professor, is one example of this. She took out roughly $90,000 in student loans during the ’90s to complete her education, but after having her debt eliminated, she and her husband began using the newly available funds to help her stepdaughter pay off her student loans. “It took some of the sandbags off my back,” she said. “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.
Student Loan Forgiveness Fails to Deliver Financial Relief: Despite Billions in Debt Relief, Borrowers Still Struggle to Make Ends Meet (PHOTO: GOOGLE)
Student Loan Relief Efforts Fall Short: Despite Billions in Debt Forgiveness, Borrowers Still Struggle to Afford Basic Expenses
The Biden administration has forgiven over $1.2 billion in student debt for 35,000 public service workers and provided $168.5 billion in relief to 4.76 million student loan borrowers in July. However, despite these efforts, many borrowers are still struggling to make ends meet. As the nation continues to grapple with financial uncertainty, it is clear that more needs to be done to address the ongoing financial struggles borrowers face.
