If student loans were forgiven, what would you spend the money on instead?

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In 2021, GOBankingRates conducted a survey in which 52% of 3,600 respondents indicated they were in favor of a general student loan forgiveness. Forbes estimates that there is $1.75 trillion in total debt outstanding, 92% of which comes from federal loans and that each borrower owes an average of about $28,900. The current proposal is $10,000 per borrower.

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With the moratorium ending in just weeks, GBR again asked readers about their loans, this time about what they would do with the extra funds if student loans were scrapped. There were 502 Americans, ages 18 and older, who participated in the survey in July 2022, answering the question:

If your student loan were forgiven, what major purchase or life change would you make?

Outside of the “other/no change” category, the majority of respondents wanted to buy a house. Twenty-two percent of respondents chose this option, including 48.18% of 18-24 year olds and 45.33% of 25-34 year olds.

Paying off other forms of debt was another popular choice for 21.2% of respondents, especially for older demographics in the survey, including 30.12% of those aged 35-44 and 45.05% of those aged 45-54. year.

Early retirement and career change lag behind, chosen by 8% and 5.8% of respondents respectively. Although both of these options were strong in the younger age group, 19.12% of 18-24 year olds already wanted to give up their career and 17.65% of the same age group wanted to change jobs.

Getting married and having a baby appear to be the lowest priority options across all ages, with just 3.8% and 4.4% of people respectively choosing these life events as what would they do if they didn’t have a child. student loans.

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Another interesting result: the majority of women wanted to buy a house, 27.78% of them choosing this answer against 14.15% of men. Conversely, men are more likely to want to retire early and change careers, with 11.32% and 11.79% respectively responding in kind (compared to 5.56% and 1.39% of women) .

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