What does student debt forgiveness look like in 2023?

In the ever-evolving landscape of higher education and public policy, student debt forgiveness remains a topic of significant interest and debate. In 2023 the issue of mounting student loans weighs heavier than ever on the minds of millions of borrowers across the nation. Policymakers and educators grapple with the complexities of finding effective solutions. In this article, we delve into the current state of student debt forgiveness, exploring the latest statistics, public opinion, and the implications of debt growth into the future.

Where is the borrowed money coming from?

  • 51.8% of undergraduate program completers use federal loans at some point (educationdata.org)
  • 29% of undergraduate students borrow federal loans (educationdata.org)
  • 66% of graduate students borrow federal loans (educationdata.org)
  • 7.2% of students use student loans from a private source, such as a bank or credit union (educationdata.org

Who is suffering from student loan debt?

  • 14% of the student loan debt balance belongs to students who are still in school (educationdata.org)
  • 20% of all American adults report they have outstanding undergraduate student debt; 24% report outstanding postgraduate student loans (educationdata.org)
  • In a single year, 31.5% of undergraduate students accepted federal loans (educationdata.org)
  • Middle-income students are most likely to take out federal loans at 71.8% (educationdata.org)
  • 61.4% of female bachelor’s degree holders accept federal student loans (educationdata.org)
  • 52.2% of male bachelor’s degree holders accept federal loans (educationdata.org)
  • 36% of federal borrowers are between the ages of 25 to 34 (educationdata.org)

How does loan debt affect students?

  • 1 in 3 has cut spending on necessities like food, housing, and healthcare to help afford upcoming student loan payments (bestcolleges.com)
  • 61% of those who could easily afford monthly payments before the pandemic now struggle to do so (bestcolleges.com)
  • In May 2020, 9% of borrowers who attended public institutions were behind on their student loan payments (educationdata.org)
  • Four years after graduation, 48% of Black student borrowers and 17% of White student borrowers owe more than they initially borrowed (educationdata.org)
  • Doctors of Medicine are the most likely to have student loan debt; 81.0% owe graduate school debt, while 80.3% have unpaid loans from undergraduate school (educationdata.org)
  • 26.7 million or 61.2%  of borrowers have loans in forbearance (educationdata.org)

What do Americans think of student debt forgiveness?

  • 55% of Americans support the cancellation of student loans up to the value of $10,000 per borrower (wordsrated.com)
  • 31% of Americans oppose student loan forgiveness altogether (wordsrated.com)
  • 47% of Americans support cancelation of up to $50,000 per borrower (educationdata.org)
  • 30% of Americans oppose student loan debt cancelation (educationdata.org)
  • 53% of respondents supported Biden's debt relief, with 45% opposed (Reuters)

How much do we owe?

  • The average public university student borrows $25,969 to attain a bachelor’s degree (educationdata.org)
  • Student loan debt in the United States totals $1.774 trillion (educationdata.org)
  • In March 2023, the total federal student loan debt balance was just over $1.64 trillion (bestcolleges.com)
  • In March 2023, the average federal student loan debt in the U.S. was about $37,720 (bestcolleges.com)

What is the outlook for future student loan debt forgiveness?

  • Outright debt cancellation would boost gross domestic product (GDP) by $86 billion to $108 billion per year (investopedia.com)



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