As the November election approaches, student loan debt is emerging as a major issue influencing American voters, regardless of whether they hold student debt themselves.
According to the survey by Bankrate, student loan debt will have a major influence on the votes of about 20% of Americans. For those with personal student debt, the number rises to 29%.
"We're still seeing that pretty close to 3 in 10 Americans say student loan debt is a national crisis...that the government hasn't done enough to financially assist borrowers," Sarah Foster, an analyst at Bankrate says.
The generational impact of student loan debt is also noteworthy. Although commonly associated with Gen Z voters aged 18 to 27, it's actually the millennial generation that seems most concerned.
Foster attributes this to the negative impact student loan debt has had on their finances, especially regarding delayed major financial milestones over the past decade. Generation X is also increasingly viewing student loan debt as a significant issue.
Income levels further delineate how voters perceive student loan debt. Higher-income Americans, especially those earning $100,000 or more per year, are notably influenced by student loan debt in their voting decisions.
In contrast, about 25% of Americans earning less than $50,000 annually see student loan debt as a crucial voting issue.
The situation is dire for those struggling to make routine payments. Close to one in four Americans with student debt have had to skip at least one monthly payment due to financial pressure. Foster highlighted that lower-income households feel this strain the most, making it imperative to consider relief options from the government.
The Biden administration has introduced an income-driven repayment plan known as the SAVE plan.
Foster described it as a potentially viable long-term solution, saying, "Experts say it's likely to survive some of these legal challenges, at least more so than the Plan B forgiveness plan that Biden has proposed as well."
Under this plan, individuals earning less than $32,800 annually might qualify for zero-dollar monthly payments, while still remaining eligible for loan forgiveness.