A narrow majority of Americans, 55%, said they support forgiving up to $10,000 in federal student loan debt, according to a recent poll from NPR/Ipsos.
However, this support waned when respondents were asked to consider higher amounts of student debt forgiveness or adding a household income ceiling, according to the poll. Just 47% of Americans supported forgiving up to $50,000 in student loans and 41% supported forgiving all federal student loan debt.
Among the respondents who currently hold student debt, 84% said they support forgiving up to $10,000, whereas 78% support forgiving up to $50,000 and 68% support forgiving all federal student loan debt.
If you hold private loans, they will not qualify for any federal student debt forgiveness. But you can lower your monthly payments by refinancing. Visit Credible to find your personalized interest rate without affecting your credit score.
Americans weigh in on student loan payment pause
Federal student loans are currently in COVID-related forbearance and payments have been paused until Aug. 31st. During this time, borrowers are not required to make payments on their loans and interest rates have been set to 0%. The Department of Education has also stopped collections on defaulted loans during this time.
"Among those with student loan debt, the majority report not paying down their loan during the pause," the Ipsos poll stated. "When asked what they have been able to do instead, the most common actions are those that provide a bit of financial breathing room: having an easier time affording essentials (food, rent, gas, etc.), paying down other debt, and putting money into savings."
About 42% of Americans said they support extending the current federal student loan payment pause without forgiving any loan debt, while 41% said they support ending the pause now without forgiving student loan debt.
Since the payment pause began, 57% of student loan debt holders said they have not made any payments, according to the poll. And 47% said the federal loan pause has improved their mental health.
The payment pause did not encompass private student loans but these borrowers can potentially lower their payments through a refinance. Visit Credible to compare multiple student loan lenders at once and choose the one with the best interest rate for you.
Biden considers canceling some student loan debt
President Joe Biden has said that he's considering canceling some student loan debt but has not yet given an official decision on when, or how much. He did, however, say that he will not cancel the $50,000 in student loan debt that some Democrats have called for.
"I am considering dealing with some debt reduction," Biden told reporters at the White House in May. "I am not considering a $50,000 debt reduction. I am in the process of taking a hard look at whether or not there will be additional debt forgiveness and I will have an answer on that in the next couple of weeks."
While the administration has not yet announced a decision on student loan debt cancelation, former White House press secretary Jen Psaki has said that Biden "would make a decision about any cancellation of student debt before the conclusion of that pause on student loans."
If you are looking to pay down your private student loan debt, refinancing could help lower your interest rate. To see if this is the right option for you, contact Credible to speak to a student loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at firstname.lastname@example.org and your question might be answered by Credible in our Money Expert column.