Topline
The majority of Americans are concerned student loan forgiveness could worsen inflation, according to a CNBC/Momentive poll, as the Biden Administration prepares to make an announcement regarding student loans within the next week.
Student loan borrowers gather near the White House to tell President Biden to cancel student debt on … [+]
Key Facts
The survey found 59% of Americans reported concern about how loan forgiveness would affect already high inflation, according to an online study that polled a national sample of 5,142 adults from August 4 to August 15.
According to the poll, 34% of respondents said only borrowers “in need” should have their student loans forgiven, while 32% are in favor of loan forgiveness for all Americans who have student debt.
A smaller share (30%) said no one should receive student loan forgiveness, although the opinion is distinctly split by age, with 39% of respondents age 65 and older disagree with any form of loan forgiveness while only 19% of adults between 18 and 34 years old hold the same view.
The results of the survey line up with previous polls, which found that while a narrow majority of Americans support some student loan forgiveness, it is sharply split by factors like age and political party affiliation.
News Peg
The Biden Administration is slated to make an announcement about student loans in the “next week or so,” Education Secretary Miguel Cardona said Sunday. A pause on federal student loan payments first established by former President Donald Trump amid the onset of the Covid-19 pandemic is set to expire on August 31. Biden has previously extended the pause four times. There’s speculation that Biden will announce a cancellation of $10,000 for borrowers who make under a certain set salary amount, a promise he campaigned on. Last month, a poll found that just more than half of Americans support the idea.
Key Background
Around 45 million Americans owe a total of $1.7 trillion in federal student loan debt. Some economists say the move could boost the economy and actually ease inflation by allowing borrowers to spend money that would otherwise be going to their loans. Others, like former Treasury Secretary Lawrence H. Summers, worry it could raise demand and increase inflation.
Further Reading
59% of Americans worry student loan forgiveness will make inflation worse, CNBC survey finds (CNBC)
Student Loan Debt Relief: Americans Are Split Along Party, Age Lines (Forbes)
Half Of Americans Support Biden Forgiving $10,000 In Student Loans, Poll Finds (Forbes)
Source: https://www.forbes.com/sites/carlieporterfield/2022/08/22/most-americans-worry-student-loan-forgiveness-will-worsen-inflation-poll-finds/