Loaning Forgiveness: The Federal Government needs to be spending more money on student loan forgiveness

In every presidential election, there are campaign promises that are made, but then are immediately forgotten as soon as the candidate is elected. In the case of President Joe Biden and student loans, it’s pitiful.

The idea of forgiving student loan debt is a great idea — it would help many struggling Americans, but when you don’t follow through with an idea, that’s all it is — an idea.

In both 2020 and 2024, he campaigned to increase student loan forgiveness by spending millions on ads on black and Latino-owned radio stations and advertising the money to the lower class who needs it. He is taking advantage of their financial situation in order to gain votes in crucial swing states, but then leaving them out to dry by failing to enact any sort of successful legislation to help them.

So where’s the money, Joe?

Biden’s first attempt to provide debt relief was an utter failure. In August 2022, he announced his gilded, multi-billion dollar plan which would’ve fully canceled debt for over 20 million borrowers, per his announcement speech.

But it was just too good to be true.

His initial plan circumvented Congressional approval, by using funds from the HEROES Act — an Act to pause student loan repayment requirements created by Trump’s Administration in response to COVID-19 — but the Supreme Court ruled in June 2023 that the scale of Biden’s debt-relief plan was greater than the HEROES’ intended use, and struck down his plan. 

Instead of working with Congress to get approval for his plan, he decided to “ask for forgiveness, not permission” as he mentioned the new plan via X, but forgot to ask if the government budget could take the $430 billion hit.

Circumventing Congress was an ill-advised method of addressing the issue, but it was still progressive action that led to increasing awareness to the issue, and it was a step in the right direction for the borrowers and future students in need of the support.

Student debt is not just a financial burden, but a barrier to achieving their dreams — financial stress can prevent many students from attending their dream schools or requiring them to have to work more hours in order to afford college. Student loans are an unnecessary stressor, and the Federal Government should provide greater support in offering loan forgiveness now, and in continuing to do so in the future. 

Attempting to fix his impromptu legislation mishaps, Biden has announced his Plan B for student loan forgiveness.

To make Congress happy, Plan B will be much smaller in scope and will require a less severe financial hit to the congressional budget. As for borrowers, it will offer more financial support and lesser burdensome loan payments than that of the current student loan legislation.

The Plan B proposal is the bare minimum the Federal Government should be doing to provide relief to the students that need it — we need to invest more into the education of our country’s future.

And whether or not you support student loan forgiveness, it’s an irrefutable fact that the cost of college has increased which requires those who can’t afford college to take out greater loans, causing a greater financial burden after their education. 

In 1980, a four-year college degree — including tuition, fees and room and board — cost students $10,231 annually, adjusted for inflation, according to the National Center for Education Statistics. By 2019-20, the total price increased to $28,775. 

That’s an 180% increase. 

The systemic path of higher education makes it extremely difficult for someone to afford college and will discourage pursuing a higher education. Forgiving student loans doesn’t just affect the graduates who are still paying off the loans, but it encourages those seeking higher education.  

Forgiving students is beneficial for the economy —  it’s a form of economic stimulus, meaning it would boost GDP, increase homeownership rates and stimulate consumption — but it also gives me, a student looking at colleges, the confidence to apply to my dream schools. Allowing me to focus on my future and my dreams, instead of worrying about the debt I will be paying off later in my life.

Though Biden’s method of providing debt relief is questionable, it’s imperative that the Government better addresses the student loan debt crisis and should invest more money in the higher education of its citizens.