Here are 4 people likely to oppose student loan forgiveness.
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 borrowers. For example, a recent poll showed that 64% of respondents support the cancellation of student loans. The Biden administration understands this sentiment and Biden has canceled $17 billion in student loans. However, not everyone supports large-scale student loan cancellation. Here are 4 people who are unlikely to support student loan forgiveness — and what it could mean come election time in November.
1. Americans without a college degree
About 65% of Americans do not have a college degree. There are many reasons why a person does not attend college, ranging from cost to alternative employment options to lack of access to higher education, among others. Americans without a college degree are less likely to support large-scale student loan cancellation. Why? A college degree, on average, can lead to a higher income. Many Americans without a college degree also struggle financially. If these people have not enjoyed a higher income through a college degree, is it fair to ask them to repay student loans from student borrowers who have gained financially by attending college?
2. People who have already paid off their student loans
People who have already paid off their student loans are less likely to support large-scale student loan forgiveness. The latest student loan debt statistics show that there are 45 million student borrowers who collectively owe $1.7 trillion. There are approximately 250 million adults in the United States. This means that nearly 200 million American adults do not have a student loan or have never had a student loan. Former student borrowers who are debt-free, on average, may not like the idea of current student borrowers getting their student loans forgiven. Many of these former student borrowers sacrificed financially to pay for their education, including working multiple jobs and foregoing 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. Will the federal government provide financial assistance to those Americans who are also struggling financially?
4. Any other person in financial difficulty
There are also many people who are struggling financially and do not have large debts or student loans. They may be living paycheck to paycheck. They may have recently lost their job and cannot find work. They are 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 borrowers would be prioritized for financial aid when they too are experiencing at least as much financial hardship.
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 break expires. (Student Loan Forgiveness: 5 Key Takeaways from a Major Announcement). Alternatively, it could extend student loan relief or let it expire. Before making a decision, the Biden administration is likely to assess the political impact of any policy decision on large-scale student loan cancellation. Progressives in Congress have warned Biden that failure to pass large-scale student loan forgiveness could hurt Democrats in the election. Similarly, congressional moderates warn that canceling student loans could alienate independent and conservative voters, which could also hurt Democrats’ electoral prospects. It is important to note that while these 4 types of people, on average, may be less likely to support large-scale student loan forgiveness, that does not mean that individuals in these groups would not support such a policy. For example, many people who have never had a student loan or have paid off their student debt favor large-scale student loan forgiveness. Additionally, voters can elect candidates based on several political issues, not just because of their position on student loan forgiveness.
With student loan relief set 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: