Student debt is something a lot of Americans are stuck with. It’s not just a number on paper—it shapes what people can and can’t do with their lives. It affects where they live, whether they can buy a house, start a family, or even take a job they like. Right now, over 43 million people in the U.S. owe money on federal student loans, and the total has gone over $1.7 trillion. That’s not just a few people struggling—it’s an entire system that’s weighing people down.
So it’s not surprising that there’s a huge debate about whether the government should cancel some of this debt. Some folks say it’s the only way to give people a fair shot. Others say it’s not fair to the people who already paid off their loans, or who never went to college at all. Politicians are fighting over it, courts are weighing in, and voters are split. Everyone seems to agree that the system is broken, but no one agrees on how to fix it.
How We Got Here
College used to be something people could pay for with a part-time job or some help from their parents. That’s not true anymore. Tuition costs have gone way up, but wages haven’t kept pace. So more students have to borrow to get through school, and they’re borrowing more than ever.
Back in 1965, the federal government passed a law that made student loans easier to get. It wasn’t a bad idea at the time. The thinking was that if more people could go to college, the whole country would benefit. But over the years, loans became the main way people paid for college, and colleges kept raising their prices. The cost of a degree went up, but the return on that investment didn’t always follow.
To make things worse, student loans are hard to get rid of. You can’t wipe them out in bankruptcy like credit card debt. If you’re on an income-based plan, your balance can still grow because of interest. Some people pay for years and end up owing more than they started with. It’s not just the size of the debt—it’s the way the system traps people that makes it so frustrating.
What Lawmakers Want to Do About It
Different lawmakers have different ideas about how to deal with student debt. Some want to wipe it all out. Others want to forgive a portion or fix the repayment system. None of the solutions is perfect, and most of them come with trade-offs.
Here are a few of the bigger proposals:
- Cancel all federal student debt. That’s what Bernie Sanders wants. He’s also pushing to make public college tuition-free so we don’t keep repeating the same mistakes.
- Forgive debt for essential workers. Some bills focus on nurses, teachers, and others who worked through the pandemic. The idea is to reward people who have done a lot for their communities.
- Fix the repayment system. Biden’s SAVE plan is designed to lower monthly payments based on income. It also promises quicker forgiveness for people with smaller loans. It doesn’t erase debt up front, but it does try to make repayment less painful.
Some of these plans are expensive. Some are hard to get through Congress. But the one thing they all have in common is that they admit the current system isn’t working.
What Democrats Are Saying
Most Democrats agree that student debt is a problem, but they don’t all agree on how much to cancel or who should get relief.
Progressive Democrats like Elizabeth Warren and Bernie Sanders want to cancel large amounts of debt for most borrowers. They see it as a fairness issue. Student debt hits hardest for people with lower incomes and people of color. It holds people back from building any kind of financial security. Full or partial forgiveness would give people a chance to catch up.
Other Democrats are more cautious. Joe Biden, for example, wanted to cancel $10,000 for most borrowers and $20,000 for people who had Pell Grants, but only if they made under $125,000. The Supreme Court blocked that plan. Still, Biden’s administration has focused on more targeted fixes, like improving income-driven repayment plans and helping public service workers qualify for forgiveness more easily.
Even with these differences, most Democrats agree that the student loan system is broken and needs real reform.
What Republicans Are Saying
Most Republicans don’t support canceling student loans, especially not for everyone. They see it as unfair to taxpayers, to people who didn’t go to college, and to those who already paid their loans off. They also argue that it doesn’t fix the real problem, which is that college is too expensive in the first place.
Their concerns usually fall into three buckets:
- Cost. Canceling loans isn’t free. Someone still has to pay for it, and that often means the government—aka the taxpayers.
- Fairness. If you’ve already paid off your loans or never borrowed, why should you help someone else wipe theirs out?
- Incentives. If people think loans will always be forgiven, what’s to stop future students from borrowing even more?
Instead of forgiveness, Republicans tend to focus on:
- Holding schools accountable for poor graduation rates or low job placement.
- Cutting federal loan limits for high-cost graduate programs with low earnings.
- Providing students with better information upfront helps them understand what they’re signing up for.
- Supporting trade schools and job training as real alternatives to a four-year college.
To them, the best fix is preventing this kind of debt in the first place, not erasing it after the fact.
What the President Can and Can’t Do
People often think the president can just cancel student debt with the stroke of a pen. It’s not that simple. The president does have some tools, but there are limits.
In 2022, President Biden tried to cancel up to $20,000 in student debt for borrowers using a law called the HEROES Act. It was originally passed after 9/11 and allows the government to make changes to student loans during a national emergency. The White House acknowledged the impact of the COVID-19 pandemic.
But in 2023, the Supreme Court struck that plan down. The justices said Biden didn’t have the power to cancel that much debt without Congress. They said a move that big needed to be voted on.
After that, Biden’s team turned to another law—the Higher Education Act of 1965, which gives the Education Department the ability to cancel loans in some cases. But it’s a slower process. It has to go through a rulemaking system with public input and legal review. It can be used to help certain groups, but it doesn’t allow for wiping out debt for everyone.
Why the Courts and Congress Matter
Congress is the one with the power to decide where the government spends money. Canceling student loans for millions of people is costly. The courts have made it clear that you can’t do something that big unless Congress says yes.
That’s what the Supreme Court ruled in Biden v. Nebraska. The justices didn’t say debt forgiveness is always wrong—they just said it needs to go through the right process. If it’s going to cost hundreds of billions of dollars, Congress has to vote on it.
This means any future president will face the same limits. Small changes are still possible through executive action, but broad cancellation will likely require a new law.
What Regular People Think
Ask around, and you’ll hear a mix of opinions. Some people say student debt has ruined their lives. Others say, “I paid mine—why shouldn’t you?” The truth is, people’s views often depend on their own experience.
Younger people, especially those under 35, tend to support cancellation. Many of them are still paying loans and feel like they’ve been stuck in a system that doesn’t work. Older people—particularly those who didn’t borrow or who already paid off their loans—are more likely to oppose it.
Surveys show:
- Democrats are more likely to support some form of forgiveness.
- Republicans are more likely to oppose it.
- Black and Latino borrowers support cancellation at higher rates.
- Non-college-educated voters are less supportive of loan forgiveness overall.
These opinions matter in elections. Candidates tailor their messages depending on who they’re talking to. It’s a political issue because it’s a personal issue.
What It Means for the Economy
Canceling student debt could have different effects on the economy, depending on how it’s done. Supporters say it would free up money. People could buy homes, start businesses, or invest in retirement. It could help reduce stress and give people a fresh start.
It could also help close the racial wealth gap. Black borrowers often take on more debt and have a harder time paying it off. Canceling loans could reduce that burden.
But opponents say the cost is too high. They worry it would add to the national debt and push inflation higher. They also argue it’s not a long-term fix. Without changes to the cost of college, new students will end up in the same position.
In the end, most economists agree that forgiveness could help some people a lot, but it needs to be part of a bigger plan to make college more affordable going forward.
What Might Happen Next
Full debt cancellation is unlikely unless Congress passes a new law. But that doesn’t mean nothing is happening. The Biden administration is working on smaller changes, like improving repayment plans and forgiving loans for people in public service.
Some states are also offering free community college or expanding grants to reduce the need for loans. Colleges should provide more detailed data on graduation rates and job outcomes to help students make more informed decisions before borrowing.
The problem won’t be solved all at once. But step by step, things could change—especially if enough people keep pushing for it.
Why This Matters in Elections
Student loans are now a big topic during campaigns. For many younger voters, it’s a top issue—right up there with healthcare, housing, and climate. Politicians who support forgiveness often gain support from students and recent grads. Those who oppose it win support from voters who worry about spending and fairness.
Now that loan payments have started again after the pandemic pause, the issue feels more real. Millions of people are getting bills every month, and they’re paying attention to what candidates say.
What happens next may depend on who wins the next election.
Conclusion
Student loan debt is about more than money. It’s about what kind of future people can have. It’s about whether higher education is a ladder to a better life or a trap. Some say canceling debt is the right thing to do. Others say it’s the wrong way to fix a broken system.
But almost everyone agrees on one thing: the way things are now isn’t working. The debate will keep going, because for millions of people, this isn’t just politics. It’s personal.