As we have written about before, the value proposition of colleges and universities has been in question for some time. Exacerbated by the antisemitic protests and movements on college campuses, the value proposition’s weakening has come as college costs have risen and voters have increasingly questioned the value of a college degree.
The federal student loan program is also in deep financial trouble, and the Biden administration’s efforts to forgive student loans, including blanket forgiveness, were controversial among the electorate. Last year, a GAO analysis of US Department of Education Data found that almost half of borrowers (47%) were behind on their payments, had postponed their payments, or had had their payments deferred, accounting for $544 billion in student loan dollars.
The budget reconciliation bill is trying to address the fiscal problems with the student loan program. Both the House and Senate approaches include measures such as accountability mechanisms, simplified student loan repayment processes to encourage repayment, and the introduction of new loan limits, all intended to rein in the student debt crisis by encouraging more fiscally responsible borrowing and lowering the cost of college.
Recently, The Winston Group conducted research on voter views about student lending and student debt. From a national survey of 1,500 registered voters (May 6-9), 76% of voters say that colleges and universities charge more than what the degree is worth (4% less than what the degree is worth; 11% about what the degree is worth).
Yet for the cost, voters do not believe that students are getting what they paid for. Being ready for a job or career is generally seen as the primary reason to go to college, but only 41% believed that most college graduates are ready to enter the workforce. Nearly one in two (48%) did not believe it.
Reflecting this dissatisfaction with cost, 64% believe the statement Taxpayers should not be responsible for covering the cost of a college education that is not their own (64-23 believe-do not believe). By party, majorities of Republicans (80-13) and independents (64-23) believe this statement. Even among Democrats, nearly half believe this statement (48-33).
For more from our student loan research, click here.
