Student loan forgiveness could be the reason Democrats are losing midterm election
Student loan cancellation could be the reason Democrats to lose the midterm elections.
Here’s what you need to know – and what it means for your student loans.
Now that student loan relief has been extended for another 90 days, student loan borrowers and student loan advocates are turning their attention to the potential for large-scale student loan cancellations. Some say if President Joe Biden doesn’t cancel student loans for borrowers, it would be the biggest error it could cost Democrats congressional seats in the midterm election on Nov. 8, 2022. Others say canceling student loans is poorly targeted public policy that could hurt Democrats in the midterm election and drive out the moderates and conservatives. Whether you support or oppose large-scale student loan cancellation, student loans could play a role in congressional elections. (Student loans are on hold, but here are 6 things to do now).
Student loan cancellation: necessary to win the elections
Is Cancellation of Student Debt the Next Step? The latest headlines on student loans are dominated by claims that Biden must cancel student loans for borrowers. Otherwise, the argument goes, Democrats will suffer heavy losses in the midterm elections. Several members of Congress – including Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Ayanna Pressley (D-MA) – have warned Biden that Democrats need to make the forgiveness of student loans a major issue. (Biden extended student loan relief, but advocates really want student loan cancellation). They argue that Biden has a golden opportunity to use his apparent authority under the Higher Education Act of 1964 to enact a large-scale student loan cancellation through executive order. If he doesn’t, members of Congress say young student loan borrowers, in particular, won’t vote Democrats. If there is low voter turnout, for example, Democrats could lose control of the US House of Representatives. (Here’s how to get a student loan discount during the Biden administration).
Student loan cancellation: the easiest way to lose the election
While some say canceling student loans is essential, others say it’s the biggest mistake Biden could make if he is to retain control of Congress. (Student loan borrowers will receive $ 15 billion in student loan cancellations). Democrats have a slight majority in the US House of Representatives and the US Senate. While Democrats will likely retain control of the Senate, it is possible that Republicans will regain control of the House. Although student loan borrowers want their student loan canceled, it is not universally popular. There are 45 million student borrowers and they represent only 20% of the adult population. While many may support large-scale student loan cancellation, the vast majority of Americans don’t have student loans, have already paid them off, or have never gone to college. Canceling student loans may also not be right for freelancers and tax conservatives in Purple Counties. These voters often believe in personal responsibility and oppose social measures that redistribute wealth. Opponents of student loan cancellation also note that most young student loan borrowers will not vote Republicans – even if there is no large-scale student loan cancellation – they therefore consider that threats from Democrats not to vote or to vote Republican are empty. (More student loan relief may be coming soon).
Student loans: student loan cancellation is not guaranteed
Will your student loans be canceled? Importantly, there is no guarantee that Biden or Congress will cancel student loans before the midterm election. (What Kamala Harris Means for Your Student Loans). Nor is it guaranteed that Democrats will lose the election if Biden doesn’t cancel everyone’s student loans. While Democratic voters may support student loan cancellation, Biden and Democrats in Congress must also weigh the political drawbacks of large-scale student loan cancellation. They might risk alienating moderates and conservatives, which Democrats might need to help maintain control of Congress.
As Congress assesses its next steps on student loans and student loan cancellation, you need to prepare for the restart of student loan payments. The student loan payment break will not last any longer. Here are some smart ways to pay off student loans and save money: