Amid economic woes, NBC News reports that most student loan recipients spend money on “travel” and “food.”

Amid the highest inflation in 40 years and other economic woes, NBC News Now reported that nearly three-quarters of people receiving President Biden’s student loans plan to use their extra money to “travel” and “eat out.”

The network briefly interrupted its mid-term 2022 coverage for a brief account of how students are using their freed-up loan money for more frivolous things than saving or “worrying about the future,” citing an expert who claimed it could be a good strategy to avoid burnout to avoid or “frustration.”

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NBC News Now hosts discuss how student loan recipients plan to spend their money.

NBC News Now hosts discuss how student loan recipients plan to spend their money.
(Screenshot/NBC News Now)

Biden’s student loan handout, which aims to forgive $10,000 in student loan debt for any borrower earning less than $250,000, has proved a contentious issue for many Americans.

Critics say the handout, which the Congressional Budget Office says costs more than $400 billion in taxpayer dollars, is unfair to them who have already paid off their student loans without receiving a handout, placing an additional burden on the average US taxpayer.

Despite these arguments against the proposal, as well as a difficult economic environment, the NBC News Now report indicates that recipients are not necessarily keen on being frugal with their handouts.

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WASHINGTON, DC - JULY 27: Student loan holders participate in a demonstration outside the staff entrance of the White House to demand that President Biden cancel student loan debt on July 27, 2022 at the Executive Offices in Washington, DC.  (Photo by Jemal Countess/Getty Images for We, The 45 Million)

WASHINGTON, DC – JULY 27: Student loan holders participate in a demonstration outside the staff entrance of the White House to demand that President Biden cancel student loan debt on July 27, 2022 at the Executive Offices in Washington, DC. (Photo by Jemal Countess/Getty Images for We, The 45 Million)
(Jemal Countess/Getty Images for We the 45 Million)

During the network’s CNBC Money Minute, the show’s co-host Morgan Radford explained that “recipients of Biden’s student debt relief plan could see their monthly payments drop to as much as $300 in the coming weeks, but understand, 73% say they actually plan to spend that extra money on travel and food.”

Co-host Vicky Nguyen introduced CNBC Tech Check host Deirdre Bosa to cover the story. Nguyen asked, “So, Deirdre, why are people more inclined to spend the money they save on non-essentials than pay their bills? I think we know the answer.”

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Bosa responded, saying, “It might also be easy for some people to enjoy traveling and eating out instead of worrying about the future.” should only be used for long-term goals” because “your short-term self may get frustrated and give up planning ahead altogether.”

Bosa added, “Instead, they say, ‘Make sure your regular bills get paid, review your goals, and try to strike a balance that also allows you to invest in your future self.”

President Biden announced that he would forgive up to $20,000 in student loan debt, at an estimated cost of $300 billion.

President Biden announced that he would forgive up to $20,000 in student loan debt, at an estimated cost of $300 billion.
(Bonnie Cash/UPI/Bloomberg via Getty Images)

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