Story at a glance
- An Economist/YouGov survey published Wednesday found that 51 percent favor the proposal, while 39 percent said they oppose it.
- More than 61 percent of Americans who said student loan debt is a serious problem have never had a student loan.
- President Biden said on the campaign trail he would consider canceling at least $10,000 per borrower, but he indicated in April he is not considering $50,000 in debt reduction proposed by progressive lawmakers.
Half of Americans support forgiving $10,000 of student loan debt per borrower, an idea floated earlier this summer by the Biden administration, according to a new survey.
An Economist/YouGov survey published Wednesday found that 51 percent favor the proposal, while 39 percent said they strongly oppose it. Most Americans surveyed believe student debt, which has eclipsed $1.7 trillion, is a serious problem.
More than 61 percent of Americans who said student loan debt is a serious problem have never had a student loan.
Meanwhile, student loan debt varies widely between generations. More millennials carry student debt than any other generation, with an average balance of $38,877 per borrower. Baby Boomers hold an average of $40,512 per borrower.
Generation X, which describes Americans born between 1965 and 1980, hold the largest average amount of student loan debt per borrower with typical balances sitting at $45,095.
Progressive lawmakers are pushing the president to cancel up to $50,000 of federal student loan debt per borrower. President Biden said on the campaign trail he would consider canceling at least $10,000 per borrower, but he indicated in April he is not considering $50,000 in debt reduction.
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Yet the administration has taken several steps to reform the student loan system outside of widespread forgiveness, including a revamping of the Public Service Loan Forgiveness program (PSLF).
The education department announced a separate series of overhauls last week, with one addressing the way loan interest capitalizes.
Interest capitalization is a student loan mechanism that occurs when a loan, while in a grace period such as deferment or an income-driven repayment plan, continues to accrue interest that’s then added to the principal balance.
This results in the loan’s interest rate being applied to an ever-growing principal balance, something the department wants to change.
The department proposed a new rule that would eliminate capitalization when a borrower enters repayment, exits forbearance, defaults on a student loan or exits most income-driven repayment plans, saying it will “help borrowers who struggle to repay their loans.”
But the proposed rule states there will still be instances in which interest capitalization can occur, as required within the Higher Education Act.
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