A fifth of college students would prefer to see an extension of the loan repayment pause over loan forgiveness.
Last week we surveyed 1,048 college students to find out what young Americans want to see from Biden’s long-awaited announcement as the loan repayment pause end date looms.
Student Beans found what Gen Z would like to see President Joe Biden announce before August 31, ranked from most to least appealing. Most would like to see at least $10K of forgiveness for all borrowers, but a loan repayment pause extension came as the next most favorable outcome.
- Announce student loan forgiveness of at least $50K
- Announce student loan forgiveness of at least $10K
- Extend the loan repayment pause
- Stop the loan repayment pause, but apply 0% interest for the next year
- Stop the loan repayment pause, but apply 0% interest for the rest of 2022
- Stop the loan repayment pause and announce no student loan forgiveness
While 40% of respondents voted for forgiveness of $50K as their preference, a fifth said a loan repayment pause would be their preferred route, as rising costs cause financial concerns for young people.
Two-fifths (41%) of US college-goers have taken out a student loan during their studies, but there is little difference in opinion between those with and without student debt.
In fact, those without a student loan are more likely to want to see the loan repayment pause extended, and those with a loan are more prepared to take responsibility for their debts.
Do you think President Joe Biden should extend the student loan repayment pause?
|Those with a student loan||Yes, I’m scared about paying back my debts – 85%||No, I need to take responsibility for my debts – 15%|
|Those with no student loan||Yes, people need more time to pay back their debts – 89%||No, people need to take responsibility for their debts – 11%|
Jessica Pinkett, Head of Youth Insights at Student Beans, said, “Young people across America are feeling the pressure as they wait for President Biden to let them know what their financial future looks like. Inflation and rising gas prices are already crippling young people, and Biden’s lack of announcement thus far is causing concern.
“It’s clear that college students would like to see their debt wiped clean as a priority. But a fifth would prefer to see the pause extended a little while longer so they are able to calibrate their finances over the difficult winter months.
“Whatever the announcement, Biden needs to make it fast, and put stressed out students out of their misery.”