Impact of Student Loan Debt on Older Americans
Today’s YouTube video focuses on the issue of the student loan debt crisis, especially for the age bracket of fifty-five-plus-year-olds. As Republican led states continue to oppose and even file lawsuits against the Biden Administration, student loan borrowers continue to struggle financially. Below is a summary of the YouTube video regarding student loan forgiveness and the issues with those nearing retirement.
Latest Study on Student Loans Debt
Many think student loan debt is solely a young person’s problem. However, a recent study by the New School’s Schwartz Center for Economic Policy Analysis reveals a surprising truth: over 2.2 million Americans aged 55 and over struggle with student loans, impacting their financial security.
They’re the largest demographic among student loan borrowers, with 43% of borrowers in this age group falling into middle-income brackets.
Half of these student loan borrowers earn less than $54,600 annually. This makes saving for retirement difficult and increases their dependence on public assistance.
Furthermore, 15% of workers aged 55-64 and 17% over 65 have student loan debt but never completed their degrees.
According to the study, these findings highlight the need for policy changes with programs like the Biden Administration’s SAVE Plan. It was also recommended that wage garnishment of Social Security benefits for student loan repayment be prohibited.
States Against Student Loan Forgiveness
The lawsuit against student loan forgiveness by some states is beyond ridiculous. Student loan forgiveness can benefit these states because it frees borrowers from debt and reduces the need for public assistance.
An increase in borrowers’ spending power ultimately translates to higher state tax revenue. However, if states don’t ultimately protect their residents financially, borrowers may relocate to a state that does, and that would decrease their former state’s tax revenue.
The lawsuits filed by the states against student loan forgiveness also lack legal merit.
States lack legal standing to sue as they are not directly impacted negatively by student loan forgiveness. This is not to mention that lawsuits aren’t free. Taxpayers are wasting millions of dollars on lawsuits that ultimately benefit no one.
But while politicians stand on the stump and argue against student loan forgiveness and point to their lawsuit, they never mention they lost the lawsuit.
The Hypocrisy of Some States Opposing Student Loan Debt Relief
Only Republican-led states oppose student loan forgiveness. These states are Alabama, Alaska, Arkansas, Florida (some of us like to say Flori-duh), Georgia, Idaho, Iowa, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, and Utah.
Of course, these states freely accept federal funding when offered, and it’s well documented how Republican politicians opposing student loan forgiveness never complained when their Paycheck Protection Program (PPP) loans for businesses were forgiven. This, besides the fact that politicians campaign with other people’s money.
Even more insane is that states are trying to dictate how the federal government spends federal funds, mirroring an illogical interpretation of states’ rights.
In the same way, Florida can’t tell Texas how to spend state funds, neither can the federal government tell states, and states definitely can’t tell the federal government how to use federal funds.
Don’t politicians know this? Of course they do, but that’s not the point. They hope voters don’t know this.
While politicians have made this a political issue and argue with spooky keywords like “socialism,” the fact is this is about what’s best for states. But of course, we can’t forget another keyword tossed around: “entitlements.”
Yet, Alaska, which also opposes student loan forgiveness, gives each resident, including children, funds from the Alaska Permanent Fund. Last year, each resident received $1,312 of entitlements.
The hypocrisy hurts not only borrowers but the state itself.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
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