The student loan forgiveness program established by Joe Biden was designed to help people out of debt. Look at these poor debtors – we have to help them. By ensuring they have less to pay on student loans, they can work on getting out of all debt. Biden is simply trying to make sure they are more financially secure for the future.
Only, that’s not what’s happening at all.
If people were using the student loan assistance to pay off debt, very few people would have a problem with the plan. However, many of the people receiving the assistance are actually blowing the money on random luxury items.
Intelligent.com conducted a survey to show how the anticipated recipients of Biden’s student loan forgiveness will spend the extra income. 73% said that it would be spent on such non-essential items as travel and dining out.
The anchors of CNBC’s “Money Minute” spoke about how the balance should be achieved so that loan forgiveness is used not only on long-term goals but also on short-term ones. And why? “Because your short-term self might get frustrated.”
Wow, so we’re handing out millions of dollars so that people can use the money to travel. This is the epitome of today’s snowflake generation. Heaven forbid that we allow people who are in debt to get frustrated because of their over-commitment to spending money.
Every single person who obtained loans knew what they were getting themselves into. They knew that once they graduated or stopped taking classes, they would have to pay back the money. And many likely obtained other debt, too – credit cards, car loans, mortgages, and more. They took out all of those lines of credit so that they could focus on the short-term.
We wouldn’t want anyone to get frustrated because of not living their best lives, would we?
Meanwhile, the people who accepted the frustration so they could pay off their debts are being penalized – and will have to pay for those who got the help with their student loans.
It’s not fair – and when the survey results paint a clear picture of how the money is going to be used, it’s hard to understand how the Democrats would continue to support Biden’s plan – or some of the more progressive plans that would dismiss all student loan debt.
Christian and money-managing expert Dave Ramsey has a program known as “Financial Peace University.” He talks about baby steps where people can start to experience financial peace without turning to loans and credit cards. Each baby step involves laser focus to get to the next step.
During the time people work the early steps of Financial Peace University, they are told to make it uncomfortable for themselves. They are to cut out things like coffee shop lattes and even vacations. All extra money should be used to pay down debt and establish a nest egg. Only after a person is debt-free can they focus on the luxuries.
It would seem that many of Biden’s anticipated recipients of student loan forgiveness should be going through Financial Peace University. This whole idea of not wanting to frustrate their short-term selves is a joke. And realistically, none of us should start to pay more taxes just because of the entitled generation wanting to take a vacation because life got too hard for them all of a sudden.