Cancellation of student loan is supported by most Americans, but the results are misleading

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Do most Americans really think all student loan borrowers need to cancel their student loans?

Here’s what you need to know.

Student loans

The ongoing debate over the abolition of the student loan is attracting opinions from all quarters. Some say these are important policies that will stimulate the economy, reduce inequality, and help student loan borrowers start families, buy a house, and save for retirement. Others say student loan abolition is a massive transfer of wealth borne by federal taxpayers, which is unfair to 80% of American adults who either have no student loans or have not attended college. A new one added fuel to the fire vote states that 52% of Americans support “complete loan forgiveness for all borrowers.” However, the results are deceiving. That’s why.


Cancellation of student loan: pre-existing rules

First, let’s start with the original survey that was posted on the website and included 3,633 people (who were not weighted by demographics) and does not appear to be a scientific survey.

“What approach to student loan forgiveness do you think the US should take?

  • Forgiving a temporary loan during a pandemic
  • Forgiven Loans for Government Officials
  • Loan Forgiveness for Low Income and High Debt People
  • General loan forgiveness for all borrowers
  • I don’t think the federal government should forgive loans. ”

First, the survey asks respondents to select the US option. to adopt… However, the choices are a mixture of existing policies and student loan cancellation proposals. For example, the federal government is already offering temporary student loan forgiveness during the Covid-19 pandemic. Under the Cares Act – a $ 2.2 trillion stimulus package – Congress suspended payments on federal student loans, set student loan interest rates at 0%, and suspended collection of federal student loans in the event of default. As a result, student loan borrowers will receive over $ 90 billion in student loan cancellations, according to the US Department of Education. The second answer asks respondents whether the US should accept “government loan forgiveness”. The Public Service Loan Forgiveness Program is an existing program that helps student loan borrowers working for a qualified government service or nonprofit employer to cancel a student loan. Biden’s student loan forgiveness plans support both of these policies. As president, Biden extended the student loan exemption under the Cares Act, which helped student loan borrowers total about $ 5 billion each month. This is in addition to the $ 3 billion in student loans that Biden canceled during his presidency. Biden is also supporting student loan borrowers under the Public Service Loan Forgiveness Program to obtain forgiveness on student loans of up to $ 50,000 after five years instead of the current 10 years.


Student Loan Forgiveness: Combines Student Loan Cancellation In Multiple Ways

Second, the choices are a mixture of whether there should be student loan forgiveness, who should be eligible for student loan forgiveness, and when there should be student loan forgiveness. For example, in the last response, respondents are asked whether the federal government should abolish student loans altogether. The second answer (government officials), the third answer (student loan borrowers with a high debt to income ratio) and the fourth answer (all student loan borrowers) discuss who is eligible for student loan forgiveness… The first answer is not talking about who should be forgiven for a student loan, nor is it about whether they should be forgiven for a student loan. Rather, the first answer – getting a student loan cancellation during the Covid-19 pandemic – discusses when student loan borrowers should receive a student loan cancellation.


Most Americans want to write off all student loan debt?

Third, the term “full loan forgiveness for all borrowers” ​​is a vague term. Does this mean a large-scale cancellation of the student loan? Does this mean that every student loan borrower must get a student loan forgiveness? Does this mean that every student loan borrower should be forgiven for all of their student loans? Well, different news outlets have described the results differently. One output wrote that most Americans want to cancel all student loan debts. Other output wrote that “full student loan forgiveness” does not apply to all student loan debt, but to all student loan borrowers. However, the issue also states that “a large number of Americans — perhaps even the majority — support even more debt forgiveness” than $ 50,000 in student loan debt.


Do Biden Americans Support Student Loan Forgiveness?

This survey is being conducted at a time when US Supreme Court Recently Denied Student Loan Cancellation Certificate… Interestingly, the results of this survey are similar to last year’s Data For Progress survey. During this survey, respondents were asked several questions, including: “Should every student loan borrower receive a $ 50,000 forgiveness?” and “Should all student loans be canceled?” The survey showed that 52% answered in the affirmative to the first question and 44% answered in the affirmative to the second question. These numbers are relatively high in favor of canceling a significant portion of student loans. However, the president and members of Congress take a very different approach to policymaking. Biden’s student loan forgiveness plan focuses on canceling a $ 10,000 student loan, probably only for federal student loan borrowers. Senators Elizabeth Warren (D-MA) and Chuck Schumer (D-NY) will limit student loan forgiveness to federal student loans only and only to student loan borrowers who earn less than $ 125,000 a year. In both cases, this is very different from giving each student loan borrower a student loan cancellation or cancellation of all student loan debt, as suggested by Senator Bernie Sanders (I-VT). With public hearings on student loans continue todayThere may be changes on the horizon in forgiveness and student loan cancellation. The question is how much public opinion will influence politicians.

If you have student loans, here are some smart options to help you save money:


Student loans: additional information

Biden Cancels $ 3 Billion Student Loans

5 Ways Biden Can Change The Amount Of Student Loan Forgiveness

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