Around two in five (39%) support forgiving all student loan debt for people earning less than $125,000 per year or less than $250,000 for married couples. However, just three in ten Americans support forgiving all student loan debt, regardless of income (29%).
10 years is the minimum amount of time after graduation before you are eligible for PSL forgiveness. Among the top 10 complaints about student loans, PSLF is the fourth-most griped about. One-third of Americans strongly support PSLF. 57% of Americans support PSLF on some level.
The Republican lawmakers said they view President Joe Biden's plan to forgive student debt as an unfair approach that saddles taxpayers with the bill and doesn't address the underlying issues that are causing college costs to rise.
The court's three liberal voices — Justices Elena Kagan, Sonia Sotomayor and Ketanji Brown Jackson — all opposed the decision.
Who could benefit the most from Biden's latest attempt at student loan forgiveness? Undergraduates at public two-year colleges might be in the best position – if the administration's new policy holding predatory colleges more accountable goes as planned, that is.
“Those with the lowest debt levels are least likely to have degrees," Matthew Chingos, who directs the Center on Education Data and Policy at the Urban Institute, recently told the Times, "so $10,000 of forgiveness is most likely to fully eliminate debt for people with the least education."
The Cato Institute, a libertarian think tank, sued the Biden administration on Oct. 18, arguing the relief plan could undermine an existing program that allows borrowers to have their debts cleared after a decade of qualifying payments if they become government employees or nonprofit workers.
By a vote of 6-3, the justices ruled that the Biden administration overstepped its authority last year when it announced that it would cancel up to $400 billion in student loans.
In Department of Education v. Brown, Brown and Taylor are two individuals who have already repaid their student loans in full. They are arguing that Biden's student loan forgiveness plan harms them because they would not be able to receive loan forgiveness under the plan.
That proposal was hugely popular with borrowers, who saw it as a chance to alleviate at least of some of the debt they've complained is holding them back from moving ahead in life. However, many Republicans— including the lineup of politicians seeking the 2024 GOP presidential nomination — didn't like the policy.
Opponents of student loan cancellation say that one-time student loan forgiveness is a band-aid on a much larger, unaddressed problem: the growing cost of a college education. College tuition is only getting more expensive.
GOP alternative
Members of Foxx's committee have introduced a bill called the Federal Assistance to Initiate Repayment (FAIR) Act, which would allow student loan borrowers to access affordable and burden-free repayment options, according to the text.
It's perhaps no surprise, then, that 24% of Americans with student loan debt say it's their biggest financial regret, according to a survey from personal finance site Bankrate.
Freeing up funds through debt cancellation would allow millions of borrowers to spend into the broader economy. Short-term consumption levels could be boosted by as much as 4 percent, increasing real GDP by between $86 billion and $108 billion over 10 years.
A majority of Americans put affordable college before loan forgiveness A new NPR/Ipsos poll finds majority support for forgiving $10,000 in federal student loan debt, but even broader support for making college affordable for future students.
Income-driven plans for federal student debt tie monthly payments to a borrower's family size and income and forgive any remaining balances after 20 or 25 years of payments.
New Student Loan Forgiveness Plan Could Debut In 2024
Shortly after the Supreme Court struck down Biden's initial student loan forgiveness plan, he announced that the administration would work to develop a “Plan B.” This new program is currently in development, and could be released later this year.
2007: Congress creates PSLF.
Student loan debt slows new business growth and limits consumer spending. Broad student loan debt forgiveness may help boost the national economy by making it more affordable for borrowers to participate in it.
Myth: Student loan forgiveness is the fair way to help Americans escape massive amounts of debt. Fact: Borrowers signed on the dotted line for their loans. Erasing these loans does not teach borrowers to manage their debts. Moreover, the cancelation is an insult to those who diligently paid off their loans.
Putting loan forgiveness in fiscal perspective
Forgiving student debt up to $50,000 per borrower (as Senators Elizabeth Warren and Chuck Schumer have proposed) would cost about $1 trillion. Limiting loan forgiveness to $10,000, as President Biden has proposed, would cost about $373 billion.
Student loan debt cancellation is essential to the financial wellness of millions of Americans. With student debt cancellations, people will be able to pay off other debts, purchase homes, and invest in their communities, futures, and the American economy.
Since the student loan cancellation program is unfunded, all else equal there won't be any additional future revenues to offset this increase. Thus, the real burden has to decline. This is achieved by an increase in the price level.