While many student loan borrowers are hoping the Education Department will extend the more than two-year pause on federal student debt and announce some type of loan forgiveness, a new poll finds that a majority of Americans are concerned that student loan forgiveness will make inflation worse.
According to a CNBC poll, 59% of Americans worry that any move by the Biden administration to erase student loan debt could create a bigger problem for people already struggling with record-high prices.
Approximately 44 million borrowers owe a combined total of $1.7 trillion in federal student loans, according to CNBC.
The argument that canceling college debt would put more money into borrowers' pockets and therefore drive up inflation does not necessarily hold true for all borrowers, however.
Some told CNBC that their spending habits would not change if some or all of their student loan debt was forgiven, while others said they haven't made many changes during the payment moratorium.
Malcolm Newman graduated from Drexel University with a bachelor's degree in environmental science. Now 26 and employed by The Academy of Natural Sciences in Philadelphia, he told CNBC that he has continued to make payments on private student loans during the federal student loan repayment pause.
"I haven't really altered my spending habits," Newman said. "You know, when those payments kick back in, I'll have a little bit less than what I've been used to, but it’s nothing that’s going to put me under or get me evicted from my house."
The survey found that 53% of adults would pay off other loans if student debt forgiveness gave them a little more room in their monthly budget, while 45% would save the money for retirement.
About a third — 30% — believe there shouldn't be loan forgiveness for anyone.
Among this group, 39% of men say no one's loans should be forgiven, while 22% of women agree.
Just 19% of adults 18-34 years old think no one's loans should be forgiven, versus 39% of those older than 65.
The belief that only those in need should have their loans forgiven was shared by 34% of respondents.
Meanwhile, 34% of respondents say only those in need should have loans forgiven and 32% are in favor of loan forgiveness for all who have student debt.
With a bachelor's degree from Temple University and a master's degree from Sarah Lawrence College, Tonya Edmonds owes more than six figures in student loans.
"I think there should be forgiveness because the majority of the time, unless you start out with a job that is a high-paying job, you can't afford to pay," Edwards, an artist and administrative assistant, told CNBC.
"I'm not a doctor, I'm not a lawyer, I can't pay the $100,000, or even the portion," she said. "They always ask for a portion that is too big, like the minimum amount for them is always more than I can afford. So it's just overwhelming."
During President Joe Biden's time in office, the Department of Education has approved nearly $32 billion in college debt relief and is crafting new regulations to improve some existing loan forgiveness programs.
The poll was conducted Aug. 4-15 and surveyed 5,142 U.S. adults. No margin of error was given.