Will the issue of student loan waivers influence the upcoming presidential elections in the US?

Student loans have emerged as an important issue ahead of the US Presidential elections, according to the Bankrate survey. 1 in every 5 students revealed that this will have a major influence when they vote in November. The US Federal Reserve notes that more than 40 million borrowers owe a total of $1.77 trillion in loans. The survey found that among those who have borrowed, 29% of the respondents said that it would influence their voting choice in the election.

Trump and Biden’s stand on the issue:
The two leading candidates have pursued different strategies on this issue. Biden’s administration has in total, forgiven loans to a total amount of $160 billion for nearly 4.6 million people. Most recently in May, the administration forgave student loans amounting to $7.7 billion for undergraduate loan holders. Donald Trump on the other hand has supported a repayment scheme that would base repayment on the borrower’s family income and size.


Rising student loans:
The average cost of an under-graduate degree varies from $25,707 to more than $218,000. The fees vary according to the institute and whether the student stays on the campus or not. The Education Department has stated that the average tuition fees for a four-year under-graduate degree at a non-profit university has increased by 14% in the time period of 2010-2021.

Is it a national crisis?
The survey found that 27% of the respondents said that the Federal Government had not done enough to help the students. Close to a third of them called this a national crisis. Nearly, 25% of the respondents also expressed their inability to repay the loans in their life time.

FAQs:

What is the average size of student loan in the US?
In the year 2023, the average student debt was $38787. 53% of the students had debt less than $20,000 or less.

Which state in the US has the highest average rate of student loan?
Maryland state has an average student loan size of $42,861. It is the highest. The state with the second highest average student loan is Georgia with an average amount of $41,639.