Intelligent.com, has published a recent survey report to share insight into the impact of Biden’s student loan forgiveness program and how recipients plan to use the extra money.
The research study also highlights spending habits based on gender and political affiliation. Experts surveyed 1,250 Americans who applied or will apply for the federal program.
According to the report, 73 percent of applicants say they will spend their extra money on non-essential items. Fifty-two percent of respondents will use additional funds for clothes and accessories. Similarly, 46 percent of debt relief applicants will spend on vacations or dining. Many Americans also plan to use their increased buying power on smartphones, investing in the stock market, gifts, gaming systems, weddings, drugs/alcohol, or gambling.
Data results show that men are more likely than women to use additional money on non-essential items. Eighty-four percent of men admit they will spend on things that are not absolutely necessary, compared to 65 percent of women. Interestingly, men are also more likely to oppose spending on non-essentials. Eighty percent of male respondents say buying non-essential goods is not the right thing to do. Only 67 percent of women disagree with buying dispensable items.
The majority of respondents (77 percent) say they could use money more wisely, and it would be possible for them to spend less and save more money. This is more true of men than women; 86 percent of men compared to 70 percent of women say it would be possible. Nearly twice as many women than men (15 percent vs. 8 percent) say it would be nearly impossible or impossible for them to spend less money.
Applicants say they will also use the money on essential purchases. Seventy-five percent of respondents say they will spend on groceries, and 66 percent will make rent or mortgage payments. Likewise, 65 percent of applicants will use additional funds to pay credit card debt. Survey respondents will also use extra funds for transportation-related costs, medical care, and childcare services.
Intelligent.com commissioned this study, administered via the online survey platform Pollfish. The survey was conducted on October 20, 2022, and appropriate respondents were selected based on a screening question. All data found within this report derives from the survey. Click here to access the complete report.