Impact of Student Debt on Older Americans: A New Study

Hi everyone. Welcome to today’s podcast. In this episode, I focus on the issue of student loans and the steps being taken by Republican-led states to prevent the Biden Administration from allowing student loan debt forgiveness. This includes focusing on a recent study on the long-term financial effects of student loans. Below is a summary.

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Lawsuits Against Student Loan Forgiveness

In April, I blogged about several states suing the Biden administration to block the student loan forgiveness plan. These states are Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, and Utah.

• Eighteen Republican Led States Opposing Student Loan Forgiveness

Think about this for a second. Would you stay there if you have student loans and live in one of these states, and this lawsuit is successful? Probably not, because it boils down to simple economics. What’s that old political saying? “It’s about the economy, stupid.”

Alaska’s Hypocrisy

Let me take a moment to shine a light on  Alaska’s hypocrisy. While I’ve never been there, it seems beautiful and outdoorsy, and I would love to live there. Trust me, my wife and I looked into it.

But here’s the thing with Alaska. The state provides an annual subsidy to its residents from its oil fund. Last year, the subsidy was $1,312 per person.

Alaska Bankruptcy Court

Isn’t that essentially an entitlement, a handout? Some might call it socialism, mirroring the criticism that Senator Bernie Sanders often faces for his policies.

Now, back to the lawsuits. All these states are Republican-led. The reality is that this issue has become political instead of financial.

A Study on the Impact of Student Loan Debt

A recent study by the New School’s Schwartz Center for Economic Policy Analysis revealed the possible consequences for 2.2 million people aged 55 and above with student loan debt. This ties into an earlier blog post of mine where I make the argument that in today’s mobile society, residents of those Republican-led states will relocate and take their tax dollars with them. That only reduces the state’s tax revenue.

So, listen in on today’s podcast as I mix politics with reality and argue the absurdity of these states telling the federal government how it can use federal funds. Trust me, you’ll enjoy the hypocrisy.

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