Trendspotting: Young People Divided on Student Debt

NewsWire: 7/2/22

• Nearly all U.S adults under 30 want the government to do something about student loan debt, but there’s no consensus on what. A plurality say all debt should be canceled, but an even larger share favor selective cancellation or repayment assistance instead. (Harvard Institute of Politics)
• NH: According to a recent poll, 85% of 18- to 29-year-olds believe the government should take “action on student loan debt.” But young adults are split on just what should be done.

• 38% believe the government should cancel all student loan debt. 27% think the government should only help with repayment options. 21% believe debt should only be canceled for those who need it most. And 13% think the government shouldn't change its policy. 
• Of course, answers differ by political party. Among young Democrats and Independents, canceling all student debt is the most popular proposal (48% and 39%). And among young Republicans, helping with repayment is the favored option (38%). But even within each party, no proposal has majority support.
• We previously wrote a NewsWire on the equity tradeoffs of canceling student debt. (See “A Student Debt Jubilee... Is It Coming?”) Most obviously, every dollar the federal government cancels is one more dollar the federal government borrows. Is the burden of federal debt on future Americans any more equitable (say, by income) than student debt?
• Moreover, debt forgiveness would bail out many who aren’t in need. Some of the largest borrowers are subsequent high earners who went to medical or law school. There is also the understandable bitterness of many low-income young people who themselves (or their parents) pinched pennies to go to college without borrowing--or of those who have already paid off their debt. Clearly, these dilemmas are not lost on young people. 
• I would be curious about their reaction to alternative benefit expansions that would help young adults across the board. Perhaps this might be a significant tax break for first-time home buyers or a federally funded trust account for every child at birth ("baby bonds").

Did You Know?

• Coupon Clipping No More. In the early 2010s, the popular TV series Extreme Couponing showcased Americans who often relied on “stacking” multiple coupons to save money. These days, amid soaring prices, bargains are more coveted than ever. But avid coupon-clippers may be having a hard time finding enough coupons to stack. According to Kantar Media estimates, a total of 168B coupons circulated in 2021 across print and digital formats. This was down from about 294B in 2015. Print coupons, which are typically found in newspaper inserts, have declined in tandem with newspaper circulation. But manufacturers have also put out fewer of them over time, preferring to shift their focus to targeted coupons through digital loyalty programs. The rise in digital coupons has not made up for the decline in print coupons--and there’s little chance of returning to print given that consumers appear to prefer digital versions. Only 5% of coupons are now digital, but they represent a third of redeemed coupons.