According to a Bankrate survey, nearly one in five Americans stated that student loans would majorly influence their choice of candidate in the upcoming presidential elections. The Federal Reserve estimated that over 40 million borrowers owe $1.77 trillion in loans.
President Joe Biden and President Donald Trump have taken different approaches to student debt. The Biden administration has implemented student loan relief initiatives since its founding. Most recently, it declared an additional $7.7 billion in student loan forgiveness for undergraduate loan holders. His administration has forgiven $160 billion for about 4.6 million borrowers.
Trump praised the Supreme Court for rejecting Biden’s student loan forgiveness initiative last year. According to Forbes, he previously supported income-driven repayment initiatives, which based student loan installments on the household income and size of the borrower’s family.
According to the survey, 29% of respondents with student loans stated that it would significantly influence their vote this November.
According to the Education Data Initiative, the average cost of an undergraduate degree is between $25,000 and $218,707. The cost varies and is determined by the student’s attendance at the university and whether they reside on campus.
According to Education Department data, the average tuition at a private nonprofit university increased by 14% between 2010 and 2021. National student loan balances rise as the cost of college rises. The Federal Reserve claims the balances have increased by 66% in the last decade.
The average student loan debt for the 2020 graduating class ranges from $18,344 in Utah to $39,928 in New Hampshire, according to the Institute for College Access and Success.
According to a Bankrate survey, 27% of Americans believe that not enough has been done by the federal government to assist with student debt. Nearly one-third of Americans referred to the debt from student loans as a “national crisis.”
Saran Foster, an analyst at Bankrate, stated, “Borrowers in Bankrate polls dating back almost a decade indicate that their debt is casting a dark shadow over their financial lives, impacting their ability to achieve the same financial milestones as generations before them.”
According to the study, about 25% of the respondents with student loan debt expect to be able to pay off their debt.
