Here are 4 people who are likely to oppose student loan cancellation.
Here’s what you need to know — and what it means for your student loans.
Student loan forgiveness is popular among progressive Democrats and student loan borrowers. For example, a recent poll showed that 64% of respondents support student loan forgiveness. The Biden administration understands this sentiment, and Biden has canceled $17 billion of student loans. However, not everyone supports wide-scale student loan cancellation. Here are 4 people who are unlikely to support student loan forgiveness — and what it could mean come election time this November.
1. Americans who don’t have a college degree
Approximately 65% of Americans don’t have a college degree. There are many reasons why someone doesn’t attend college, ranging from the cost to alternative employment options to lack of access to higher education, among others. Americans who don’t have a college degree are less likely to support wide-scale student loan forgiveness. Why? A college degree, on average, can lead to higher income. Many Americans without a college degree are struggling financially too. If these individuals didn’t get the benefit of higher income from a college degree, is it fair to ask them to pay off student loans for student loan borrowers who gained financially from attending college?
2. People who already paid off student loans
People who already paid off student loans are less likely to support wide-scale student loan forgiveness. The latest student loan debt statistics show that there are 45 million student loan borrowers who collectively owe $1.7 trillion. There are approximately 250 million adults in the U.S. This means that nearly 200 million adult Americans don’t have student loans or never had student loans. Former student loan borrowers who are now debt-free, on average, may not like the idea of current student loan borrowers getting student loan cancellation. Many of these former student loan borrowers sacrificed financially to pay for college, including working multiple jobs and forgoing other financial opportunities such as saving for retirement or buying a home.
3. Americans who owe a mortgage
Mortgages, not student loans, represent the highest dollar amount of consumer debt in the United States. Notably, Americans also hold significant credit card debt, personal loans and auto debt too. Will the federal government deliver financial relief to these Americans who are also struggling financially?
4. Anyone else who is struggling financially
There are also many people who are struggling financially who don’t have substantial debt or student loans. They may be living paycheck to paycheck. They may have lost their job recently and can’t find work. They’re impacted by inflation. Yes, they may have received one or more stimulus checks during the Covid-19 pandemic. However, they may be wondering why student loan borrowers would be prioritized for financial relief when they too are struggling financially at least as much.
Student loan forgiveness: midterm election
The midterm congressional election is November 8, 2022. Biden could cancel student loans before August 31, 2022, when the student loan payment pause expires. (Student loan forgiveness: 5 key takeaways from major announcement). Alternatively, he could extend student loan relief or let it expire. Before making any decision, the Biden administration is likely to assess the political impact of any policy decision on wide-scale student loan forgiveness. Progressives in Congress have warned Biden that failure to enact wide-scale student loan cancellation could hurt Democrats in the election. Likewise, moderates in Congress warn that canceling student loans could alienate independent and conservative voters, which also could Democrats’ election prospects. Importantly, while these 4 types of people, on average, may be less likely to support wide-scale student loan forgiveness, it doesn’t mean individuals in these groups wouldn’t support such a policy. For example, there are plenty of individuals who never had student loans or who paid off student loan debt who support wide-scale student loan forgiveness. Plus, voters may elect candidates based on multiple policy issues, and not solely due to their position on student loan forgiveness.
With student loan relief scheduled to end on August 31, now is the time to prepare for your next move with your student loans. Here are popular ways to pay off student loans faster:
- Student loan refinancing (lower interest rate + lower payment)
- Income-driven repayment (lower payment)
- Student loan forgiveness (federal student loans)