When then-President Joe Biden announced his first federal student loan forgiveness plan in August 2022, he predicted that it would lift tens of millions of Americans out of longstanding debt. A new study suggests that the promises associated with the thwarted plan contributed to an opposite effect: adding to Americans’ financial distress.
“It’s a game changer,” Biden said at a White House press conference announcing the plan in August 2022. “People can start climbing out from under [their] mountain[s] of debt, to get on top of their rent and their utilities, to finally think about buying a home or starting a family or starting a business.”
But by linking surveyed consumer expectations around student loan forgiveness to consumption…