The Politics Of Student Loan Forgiveness

The issue of student loan forgiveness is really the province of the Democratic Party. An astonishing percentage of Republicans (at least astonishing to me) take the attitude of “You made your bed, now lie in it.”

Republicans argue that taxpayers would bear the cost of defaults on federal loans. They also argue that it is unfair to those who have already struggled to repay their loans.

• There is also a concern that forgiveness would disproportionately benefit wealthier graduates, who borrow more to attend elite institutions.

The “burden on taxpayers” is their weakest point, given the stupendous deficit spending of both Trump administrations. If $50 billion or even $150 billion of student debt goes unpaid, this is small potatoes in the overall Republican budgets.

Here are some relevant poll numbers:

Fifty-eight percent of Democrats find student loan forgiveness important, compared with 44% of independents and just 15% of Republicans.

Democrats are also more likely than independents or Republicans to favor debt forgiveness under the circumstances outlined in the Biden-Harris administration plan, such as eliminating debt due to runaway interest (62% vs. 27%), debt forgiveness for borrowers who entered repayment over 20 years ago (65% vs. 34%), and relief for borrowers who went to institutions that left them with large debt to income ratios (59% vs. 22%).

. Democrats are more likely to favor student loan forgiveness if the borrower is experiencing financial hardship, (68% vs. 53%), went to an institution that left them with a large debt to income ratio (66% vs. 53%), or have accrued more interest than the amount originally borrowed (74% vs. 54%).

(This nationwide poll was conducted by the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research from May 16 to May 21, 2024)