Voters Demand Relief and Reform of Student Loan Debt Amidst Ongoing Pandemic
By Brian Burton
Itself a $1.7 trillion problem by some estimates, the student loan debt crisis weighed heavily on many Americans’ financial lives even before the pandemic. With the pandemic ongoing, as well as its negative impacts on the economy, many borrowers remain in similarly precarious financial positions to those they faced at the beginning of the crisis. Despite this fact, the payment pause on student loans is set to expire in September 2021, leaving many borrowers concerned about their ability to pay. In a recent poll of likely voters nationally from Data For Progress, the Student Defense, and Progressive Campaign Change Committee, likely voters voiced exactly what kind of student debt relief they need. In addition, we measured attitudes towards systemic changes to the higher education system they may want to see in the future.
We first asked likely voters whether they support or oppose extending the pause on student loan repayments. By a 20-point margin, likely voters support the federal government extending this pause beyond its current September deadline. This figure is primarily driven by Democrats, 73 percent of whom support the measure, and Independents, who support it by a 20-point margin. This majority support for the extension is entirely understandable: with the economy still grappling with the fallout of the pandemic, many Americans are already in a tight position financially. Combined with the high unemployment rates facing many cities across the nation, it makes sense that voters are eager to see their government alleviate one of many stressors facing American households. Extending the pause on student loan repayments is an important way in which the government can support borrowers during an ongoing crisis.
Likely voters also support reforming bankruptcy laws so that student loan debt is treated in the same way as other kinds of debt. Among all likely voters, this reform is supported by a 31-point margin. Additionally, we find majority support from Democrats, Independents, and Republicans, who back this proposal by 40-point, 32-point, and 23-point margins respectively. Americans filing for bankruptcy are already in dire straits and they will face significant legal and financial consequences for having done so. In turn, they should be afforded an honest chance at a fresh start. Unfortunately, many are denied this opportunity when they remain weighed down by student loan debt, thereby making these reforms all the more crucial. On August 3rd, the Senate Judiciary Committee will be holding a hearing on this issue.
Next, we asked likely voters if they support or oppose bringing back standards aimed at preventing underperforming universities from receiving federal student loan funds. This is called the Gainful Employment rule. Among all likely voters, we find that they support reinstating this standard by a 35-point margin. A majority of Democrats and Independents (77 percent and 55 percent support, respectively) support bringing this standard back — as well as plurality support from Republicans (44 percent). Many students seek higher education in the hope of bettering themselves and the lives of those in their communities, so it is important that the government ensures that the universities that receive their student loan funds are effectively setting them up for success. Crucially, the Biden administration could reinstate this rule without Congress.
Finally, we asked likely voters about who should be eligible for leadership of agencies that provide oversight for for-profit universities. Their answer was clear: by a 39-point margin, a majority of voters support excluding lobbyists and other individuals with a history of working on behalf of for-profit universities from handling their oversight. This policy not only receives impressive backing from Democrats and Independents, who support the policy by 56-point and 42-point margins, respectively, but it also receives a plurality of support from Republicans as well. Likely voters know that protecting American students from fraud and exploitative behavior is of critical importance and requires strong and disciplined leadership at the top. To this end, the American people want to know that their leaders will be working tirelessly in students’ best interests rather than those of for-profit universities.
As new variants arise and cases surge across the country, it is clear to many that we are by no means out of this pandemic. With its continuation, Americans also continue to face challenges on multiple fronts and show enduring resilience in the face of these obstacles. The U.S. government should continue to support their efforts as we collectively push towards an end to this pandemic. Extending the pause on student loan repayments is one critical way in which the government can lighten the load of thousands of residents. Furthermore, addressing the larger systemic problems facing higher education and its financing will not only aid residents today, but better position them to thrive and help better society well into the future.
Brian Burton (@Brian_C_Burton) is a senior analyst at Data for Progress.
Methodology
From July 21 to 23, 2021, Data for Progress conducted a survey of 1,186 likely voters nationally using web panel respondents. The sample was weighted to be representative of likely voters by age, gender, education, race, and voting history. The survey was conducted in English. The margin of error is ±3 percentage points.