Should Federal Student Loan Debt Be Forgiven? [Patch Survey]

ACROSS AMERICA — President Joe Biden is taking another run at federal student loan cancellation with a proposal that would cancel at least some debt for at least 30 million Americans.

The federal student loan debt relief plan, which has been in the works for months, is intended to supplant a loan forgiveness plan struck down by the Supreme Court. Biden called the 6-3 decision a “mistake,” but ordered his Education Department to craft a new plan using a different legal authority — the Higher Education Act — and focusing on borrowers for whom student loan debt is a major obstacle.

The Education Department is still in a federal rulemaking process to clarify how the secretary can invoke that authority. It targets five categories of borrowers, focusing on those believed to be in the greatest need of help.

It remains unclear how much the program would cost to implement, and it is almost certain to be challenged in court.

• Related: Biden’s Latest Student Loan Cancellation Plan: What To Know

The outstanding education debt in the United States is about $1.6 trillion, and the average federal student loan debt balance is around $37,088, while the average balance including private loan debt may be as high as $39,981.

About a quarter of borrowers were behind on their payments before the payment pause enacted during the COVID-19 pandemic. About 40 percent of borrowers missed their first payment when the three-year pause was lifted last fall.

Polls show varying support for student loan forgiveness.

An April 2023 poll from Reuters/Ipsos found that 47 percent of Americans supported the plan scuttled by the Supreme Court to forgive a maximum of $20,000 in federal student loan debt for those receiving Pell Grants, as well as up to $10,000 for those who didn't receive those grants (with income restrictions). Another 41 percent of Americans said they did not support it.

Another poll last year conducted by The Wall Street Journal and the University of Chicago showed that 56 percent of Americans no longer believe a four-year college degree is worth the cost, while 42 percent disagreed. Skepticism was especially strong among young Americans ages 18-34. In that group, more than 60 percent said a degree isn’t worth the cost.

According to the latest available Education Department data, the average net cost to attend a four-year college in academic year 2020-21 was $14,7000 at public institutions, $28,400 at private nonprofit institutions and $24,600 at private for-profit institutions.

Student loan forgiveness is an important 2024 election issue, according to a poll last month of 3,812 registered voters, including 2,601 Gen Z and millennial respondents, by SocialSphere, a research and consulting firm.

Almost half (48 percent) said canceling student debt is an important issue in the presidential and congressional elections. Support was greater among younger Gen Z respondents, 70 percent of whom said the issue was “very” or “somewhat” important in the election.

What do you think? Take our survey — and don’t worry, we won’t collect your email address.