: What will you do after getting $10,000 in student loan debt forgiven? MarketWatch asked, you answered

by | Sep 15, 2022 | Stock Market

Americans’ student debt loads are poised to lighten up and people are making plans on what’s next for their freed-up cash. Borrowers appear to have two prime targets in mind: getting current on their other debts and getting ahead in their investment portfolio. That’s according to a MarketWatch poll that quizzed borrowers on their post-debt cancellation financial plans.

In late August, President Joe Biden announced that the government will be forgiving up to $10,000 in student-loan debt for people with federal student loans and up to $20,000 for Pell grant recipients. Borrowers have to earn under $125,000 a year in order to be eligible. Payments are scheduled to resume in January 2023 on the student loans that have been paused since the pandemic’s March 2020 start. The debt relief, made possible through an executive order, has inspired cautious applause from borrowers bogged down by debt, who are now waiting for more details. It’s also prompted sharp criticism from people without student loans to cancel. While people await more details about the application process for forgiveness (and as some critics mull legal action to block the plan), some of MarketWatch’s readers say they know what they’ll be doing when they don’t have student loan payments to worry about anymore. Investing was the top vote-getter when MarketWatch put out a poll on Twitter
asking what people were planning to do with money that otherwise would have been going to student debt payments. Nearly four in 10 people (39%) said they would invest and in second place, 35.6% of voters said they would be paying down other debts. Here are the full results:

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