Many borrowers took out student loans in anticipation of debt relief, poll shows – Fox Business | Vette Leader

According to a recent survey, many borrowers who took out student loans after 2020 did so in anticipation of debt relief from the Biden administration. (one)

During his run for the White House, President Joe Biden lobbied to forgive each borrower of up to $10,000 in federal student loan debt. And according to a recent survey, many borrowers appear to have taken out student loans based on that promise.

According to a survey conducted by Intelligent, 86% of those who have taken on student debt since Biden won the 2020 election said his campaign promise influenced their decision.

Additionally, about one in three of these borrowers said they are unlikely to continue in school unless Biden implements debt relief.

About 21% of survey respondents said it would have been unlikely or even very unlikely they would have taken on the same amount of debt if Biden hadn’t pushed for student loan forgiveness. And about a quarter of borrowers also said they would not have continued their education without a promise of debt relief.

If you have private student loans, you might consider refinancing to lower your monthly payments. Visit Credible to find your personalized rates without hurting your credit score.

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Borrowers are still expecting Biden to cancel student loan debt

While there is currently no plan for widespread federal student debt relief, 70% of recent borrowers said they are confident or somewhat confident that Biden will forgive $10,000 in student debt per borrower, according to the survey.

Biden has said he’s considering canceling some student loan debt, but hasn’t made an official decision on when or how much. However, he said he would not cancel the $50,000 in student loan debt that some Democrats are asking for.

“I’m considering looking into deleveraging,” Biden told reporters at the White House in May. “I’m not considering $50,000 in debt reduction. I am looking closely at whether or not there will be additional debt relief and will have an answer on that in the next few weeks.”

The poll also said Biden’s decision on student-loan borrowing could affect Democratic borrowers’ votes in the next presidential election. Looking at respondents who identified as Democrats, 31% said they would likely not vote for Biden in the next election unless he cancels student loan debt. Another 23% said it was highly unlikely.

Currently, student loan payments are suspended until August 31. And former White House press secretary Jen Psaki said that Biden “would make a decision on any cancellation of student debt before this hiatus in student loans is complete.”

While potential federal student loan forgiveness would not apply to private student loans, these borrowers could consider refinancing to reduce their monthly payments. Visit Credible to compare multiple student loans at once and choose the one with the best interest rate for you.

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That’s how much debt borrowers take on

According to the poll, more than 23% of students who took out student loans after Biden won the election borrowed between $5,000 and $10,000. About 14% of borrowers took out $10,000 to $30,000 in student debt.

Total student loan debt has risen sharply in recent years, reaching about $1.75 trillion in state and private student loan debt in June, according to the Federal Reserve Bank of St. Louis.

To combat the problem of student debt, Senator Sheldon Whitehouse, DR.I., last month introduced the Zero Percent Student Loan Refinance Act, which would allow borrowers to refinance their federal student loans at a 0% interest rate, if they would pass rating.

“Large interest payments on student loans can create a treadmill of debt that many Americans cannot escape. Those interest payments often stand between borrowers and the financial freedom to focus on the future, whether it’s buying a home, saving for retirement, or investing for their kids,” Whitehouse said. “This bill will help people get their loans pay off faster and get on with their lives.”

If you’re interested in paying off your personal student loan debt, refinancing could help you lower your interest rate and monthly payments. To find out if this is the right option for you, contact Credible to speak to a student loan expert and get all your questions answered.

Do you have a financial question but don’t know who to contact? Email The Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert section.

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