Majority of Americans Oppose Student Loan ‘Forgiveness’ If It Raises Taxes: POLL
More than 60 percent of Americans would oppose President Biden’s student loan “forgiveness” if it were to raise taxes, according to a new poll by the Cato Institute.
The survey found that 64 percent of American adults support the federal government “forgiving” up to $10,000 in federal student loans for people who earn less than $150,000 a year or less than $300,000 per year for married couples.
“However, support for cancelling federal student loan debt plummets when Americans consider its trade-offs,” the Cato Institute said in a statement.
Sixty-four percent of Americans oppose forgiving $10,000 per borrower if it raises their taxes, while 68 percent would oppose the move if it would primarily benefit higher income people.
Seventy-six percent of respondents would oppose student debt “cancelation” if it causes universities to raise their tuition and fees, while 71 percent would oppose the debt forgiveness if it led to “credential inflation” — where more employers require college degrees even when they are not necessary to perform a job.
“These data show that Americans don’t like the costs that many experts believe are associated with federal student loan forgiveness” said Cato’s director of polling Emily Ekins.
Before trade-offs are considered, 88 percent of Democrats support student debt forgiveness, as do 58 percent of independents. Meanwhile, 63 percent of Republicans oppose the policy.
A majority of Democrats (56 percent) still support student debt cancellation if it raises taxes. However, 67 percent of Democrats oppose the policy if it would cause college to raise their prices and 64 percent would be in opposition if it led to credential inflation.
Biden announced plans last month to “forgive” up to $10,000 in federal student debt for those making under $125,000 annually and households making under $250,000, as well as relieving $20,000 in debt for Pell grant recipients. The executive action transfers the cost of the loans to the American public.
Meanwhile, House speaker Nancy Pelosi previously said in July 2021 that Biden did not have the executive authority to issue “debt forgiveness.”
“People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress,” Pelosi said at the time.
Biden’s order is expected to cost $300 billion, according to an estimate by the Wharton School of business at the University of Pennsylvania.
