New research from the National Bureau of Economic Research indicates that President Biden's shifting promises regarding student loan forgiveness led to increased financial instability for borrowers. Those who believed forgiveness was imminent were 7.5 percentage points more likely to become delinquent on their loans by May 2025. This policy whiplash caused some borrowers to reduce their student loan payments and increase discretionary spending, leaving them unprepared when payments resumed without the promised relief. AI
RANK_REASON The cluster reports on new research findings from an economic research bureau regarding the impact of government policy on consumer behavior. [lever_c_demoted from research: ic=1 ai=0.1]
- Constantine Yannelis
- Dmitri Koustas
- Joe Biden
- Michael Weber
- National Bureau of Economic Research
- University of Cambridge
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