Impact of Presidential Candidates' Stance on Student Loans on Voter Decisions: An Analysis of Donald Trump and Joe Biden's Approaches
In the build-up to the 2024 US presidential election, the Gen Z vote is set to play a significant role. One of the key issues shaping the debate is the approach to student loan debt relief.
Joe Biden, the incumbent president, has proposed expanding and continuing student loan forgiveness programs. His administration's plan, supported by a recent federal judge ruling, could potentially benefit as many as three in four federal student loan holders. Biden's proposals aim to lower interest rates, cap interest accrual, streamline repayment, and improve administrative capacity at the Department of Education.
In contrast, Donald Trump and the Republican-led Congress have enacted legislation that cuts federal student loan access, reduces borrowing caps for graduate and parent borrowers, and dismantles protections against predatory private lending. Trump's policies replaced Biden’s SAVE income-driven repayment plan with less generous options, potentially resulting in higher monthly payments for many borrowers. They also push more borrowers toward private loans, which often have higher interest rates and exploitative practices.
Here's a comparison of their approaches:
| Aspect | Joe Biden (Democrat) | Donald Trump (Republican) | |-----------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------| | Student loan forgiveness | Large-scale federal loan forgiveness plans approved by court | Opposed broad forgiveness; halted key forgiveness programs | | Repayment plans | Supports SAVE income-driven repayment with lower payments | Eliminated SAVE plan; introduced new Repayment Assistance Plan with higher payments | | Federal loan availability | Focus on making loans affordable, lowering interest rates, and fixing administration | Reduced federal loan caps for grads and parents, forcing reliance on private loans | | Private loan protections | Advocates for stronger borrower protections and fewer predatory practices | Policies encourage shift to private loans with less oversight and higher risks |
Trump has criticised President Biden's plans to cancel student loan debt, calling it a "vile" publicity stunt and predicting that it will be "rebuked" if he is elected. This prediction was echoed when the US Supreme Court rebuked Biden's plan to wipe out over $400 billion in student debt in 2023.
Biden, however, remains undeterred and aims to forgive debt for nearly 30 million borrowers by fall 2024. The Biden administration has launched several student loan relief initiatives, including the recent cancellation of $7.7 billion in debt for 160,000 people in May 2024.
As the election approaches, 27% of Americans blame the federal government for not providing enough financial assistance to borrowers. Around 29% of US citizens perceive student loan debt as a "national crisis". The first presidential debate of 2024 is scheduled to take place on Thursday 27 June, and the topic of student loans is expected to dominate the headlines leading up to the debate.
Over 40 million borrowers owe $1.77 trillion in student loans, making it a critical issue for millions of voters. The 2024 election promises to be a significant turning point in the ongoing student loan debt saga.
[1] Biden's Student Loan Forgiveness Plans: What You Need to Know [2] Trump's Student Loan Policies: A Comparative Analysis [3] The Impact of Trump's Repayment Assistance Plan on Borrowers [4] The Republicans' Big, Beautiful Bill: A Critique [5] Modernizing the Federal Student Loan System: Biden's Proposed Reforms
Education and self-development is at the forefront of the general news as the 2024 US presidential election nears, with the Gen Z vote being a significant factor. The contrasting approaches to student loan debt relief by presidential candidates Joe Biden and Donald Trump are shaping the political landscape, with Biden proposing expansive loan forgiveness programs and Trump advocating reductions in federal loan access and private lending protections. This issue is creating a divide among voters, with 27% of Americans blaming the federal government for inadequate financial assistance and 29% perceiving student loan debt as a national crisis. News coverage leading up to the first presidential debate on June 27th is expected to heavily focus on the topic of student loans.
