These days, taking on tens of thousands of dollars in student debt for a degree is the norm. The average cost of college in the United States per year is over $35,000. Multiply that by four, and you’re talking well over $100,000 in loans just for a Bachelor’s degree. Though there’ve been some efforts, ultimately, President Biden has yet to live up to his promise of canceling student loans. But, what are the pros and cons of forgiving student loans, and what do voters think?
Pros of canceling student loans
Canceling student loans would put more money directly in the pockets of taxpayers. Americans owe about $1.75 trillion in student debt. According to The Washington Post, approximately one in five Americans owe money on student loans. A bit more than half of them owe less than $20,000. The kicker? 57 percent of those who owe are 35 or younger. That means forgiving student loans would put spending power back into the largest generation in the US workforce.
According to a poll by the American Majority Project, 58 percent of voters support canceling at least some student debt. Moreover, an overwhelming majority of supporters are Democrats. Eighty-two percent of Dems support canceling student loans, whereas only 37 percent of Republicans support student loan forgiveness. Finally, and unsurprisingly, Millennials and Gen Z are the most supportive generations of student loan forgiveness.
Cons of student loan forgiveness
In the same poll, participants answered if they found specific arguments against forgiving student loans convincing. For example, 77 percent agreed it’s unfair to Americans who already paid back their loans and would pay others’ loans through taxes. And again, 77 percent of participants also agreed that forgiving student debt doesn’t address high tuition is a convincing argument against forgiveness.
Forgiving student loans actually might not be a viable economic stimulant. The Committee for a Responsible Federal Budget estimates that it would only produce two to 27 cents on the dollar. It would also disproportionately benefit higher-income households rather than those needing the bailout. Over half of those who owe money on student loans in 2019 belong to the two highest income quintiles.
So, what do you think? Should President Biden forgive student debt?
