In the first two years of the Biden presidency, we have seen a radical overhaul of the civil service loan cancellation programan effort to create a more affordable income-driven repayment planand a proposal to write off up to $20,000 in debt per federal borrower.
Republican lawmakers have largely opposed these measures.
Like so many other issues in American politics, the management of federal student debt has become quite polarized.
It has not always been so.
Today we will look at how party views have changed over the years, why these changes have happened and what this means for borrowers.
Bipartisan support for student loans and borrowers
The federal student loan program was created in 1958 in response to the Soviet launch of Sputnik. It received bipartisan support and was signed into law by Republican President Dwight D. Eisenhower.
In more recent history, the Civil Service Loan Forgiveness Program was created with bipartisan support and signed into law by Republican President George W. Bush.
Today, there is almost no consensus between the two major parties on issues of student debt.
Democrats have become increasingly aggressive with their proposals to help borrowers and make college more affordable. At the same time, Republicans have sought to prevent these programs and recover existing resources for borrowers.
A note from the Sherpa: The purpose of this article is not to “play politics” or tell people how to vote.
Instead, the goal is to examine how politics affects public policy and how borrowers can defend themselves.
A changing electorate
Historically, college-educated voters tended to vote Republican.
During the 1994 election cycle, 54% of college-educated voters identify with or lean Republicans, while just 39% support Democrats.
In the 2020 presidential election, Joe Biden received the support of 61% of college-educated voters, leading him to victory in a close election.
Since that time, the voter education gap has only grown. Voters with a college degree are increasingly likely to vote Democratic, while voters without a college education are more likely to vote Republican.
The chicken or the egg?
Are there more college-educated voters supporting Democrats because of their student loan policies? Or do Democrats have better student loan policies to satisfy their constituents?
The answer is probably a bit of both.
For student borrowers, the question of causation does not matter. The real question is how to get more politicians to advocate for student borrowers?
Student loan borrowers must become a ‘small business owner’
I am not saying that all student borrowers should start a business. Instead, I suggest that student borrowers need the treatment of small business owners by politicians and the electorate.
Both sides love small business owners. Politicians call them regularly the backbone of the economy. This treatment is no surprise. Americans overwhelmingly prefer small businesses to big businesses.
It is no exaggeration to think that borrowers can achieve this goal.
Having a college degree makes someone less likely to depend on government safety net programs and more likely to contribute more money in taxes. On average, each college degree is worth $381,000 to the federal government. Americans who want fewer people on welfare and more people off the hook should encourage a college education.
A better educated America also helps us beat our international rivals. The original student loan program was a response to Sputnik and helped us win the space race. Today, Americans on both sides view China as a threat. If American innovation and ingenuity are the key to success, we must cultivate great minds for the next generation.
It’s time to remind people that higher education doesn’t just benefit the individual; it benefits everyone.