More than half of Americans want all student loan debts to be written off, according to a new poll

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An image of a graduation cap on a pile of money.

An image of a graduation cap on a pile of money.

Getty Images.

In February, Democratic lawmakers, including Senate Majority Leader Chuck Schumer and Massachusetts Senator Elizabeth Warren, put forward a plan to forgive a student debt of $ 50,000 to all borrowers. President Joe Biden was able to bestow this forgiveness through enforcement action, although he has not yet signed the dotted line.

But that number is not enough, if you ask many Americans. recent poll personal finance portal GoBankingRates. Roughly 52 percent of the 3,600 adults surveyed agreed with the “universal student loan forgiveness for every borrower.”

Not everyone thought the same, as 20 percent of those surveyed said they didn’t want the federal government to take over loan forgiveness at all. An additional 12 percent of people agreed that the government should only forgive loans to low-income borrowers who are also heavily indebted, while 11 percent supported forgiving loans to those in the public service. Four percent of those surveyed supported a temporary forgiveness during the pandemic.

In the country, student loan debt is up to $ 1.68 trillion, far outstripping the country’s economic growth. And this crisis isn’t just about millennials and Gen Z.Many parents have gone into debt to help their kids pay for school because the money they owe Parent Loans PLUS (or loans that parents can borrow on behalf of their children) have grown by $ 10 billion over the past two years. Reports show that 20 percent of the nation’s student debt is in people aged 50 and over, and forgiving loans will help older Americans the most.

And yet, a GoBankingRates poll shows that adults aged 65 and over are still more divided than younger generations on this issue: 39 percent support general student loan write-offs, and 36 percent believe the federal government shouldn’t. forgive loans.

Loan forgiveness controversy comes at a time when tuition fees are skyrocketing. US News that over the past 20 years, the average tuition fees at private universities have increased by 144 percent. Over the same period, tuition fees at public universities in the states rose sharply by 212%, while tuition fees at public universities outside of the state rose 165%.

What can parents do to avoid accumulating debt and help their kids navigate college finances? Here are some tips from the experts:

  • Open Rollover 529These government-sponsored mutual funds accumulate tax-free. However, the child must use them for educational purposes, otherwise any withdrawal will be subject to a tax penalty.

  • Ask your child to apply for grants and scholarshipsThis type of financial aid does not require repayment, unlike loans.

  • Chat with your child. In 2019 most parents said they planned to help pay for some of their child’s college expenses, but expected their child to contribute as well. Talk to your child about what you can do at an early age so that he or she can consider finances when making educational decisions.

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