Americans prioritize federal forgiveness of medical debt over student loan debt

Americans are expressing a strong preference for the federal government to forgive medical debt over student loan debt, according to a recent survey from AP-NORC. The survey found that 51% of Americans consider it “extremely” or “very important” for the government to broadly forgive medical debt, while only 39% say the same for student loans.

The researchers noted that respondents’ personal experiences with debt, especially student loans, influenced their views. Those currently paying off student loans were more likely to support federal debt cancellation efforts compared to those who have paid off their loans or have no experience with student debt.

Political affiliation also played a significant role in the survey results, with Democrats showing more support for federal debt cancellation initiatives than independents and Republicans.

Despite student loan debt being a more prevalent issue in terms of the amount owed and the number of people affected, Americans are more inclined to support canceling medical debt. The Federal Reserve reports that over 40 million Americans hold $1.7 trillion in student debt, while the nonprofit Kaiser Family Foundation estimates that about 20 million Americans owe at least $220 billion in medical debt.

The Biden administration has been actively working on plans to address both student loan debt and medical debt. The Consumer Financial Protection Bureau recently proposed a rule to prevent medical debt from appearing on credit reports, potentially boosting the credit scores of indebted Americans. Vice President Kamala Harris has called on states, local governments, and healthcare providers to forgive medical debt for struggling Americans.

President Joe Biden has already canceled about $170 billion of federal student loan debt and introduced a new income-driven repayment plan to provide relief to borrowers. Biden’s $150 billion forgiveness proposal focuses on specific situations like runaway interest, financial hardship, and remaining loan balances after long-term repayment.

While Biden’s efforts have faced criticism, particularly from former President Donald Trump, the administration is moving forward with plans to forgive debt early this fall. The majority of the relief is expected to be automatic, providing much-needed financial assistance to millions of Americans burdened by medical and student debt.