President Joe Biden’s handling of student loan debt has become a modern-day financial torment for American taxpayers, reminiscent of medieval torture methods. By gradually erasing student loan debt bit by bit, Biden is causing a prolonged fiscal strain, leaving taxpayers to bear the burden. This methodical dismantling of debt obligations comes despite the Supreme Court’s ruling almost a year ago that Biden lacked the authority to forgive $500 billion in student loans, a power reserved for Congress.
Yet, Biden persists. Since the Supreme Court’s decision, the U.S. Department of Education has canceled nearly $160 billion in federal student loan debt for about 4.6 million borrowers. This was achieved by expanding and reinterpreting existing programs to forgive billions more than they were ever intended to. Conservatives argue that Biden’s strategy is not just about providing relief but also about bypassing legal and constitutional boundaries, banking on the slow judicial process to solidify his actions before the Supreme Court can intervene effectively.
Biden’s approach seems calculated to present the Supreme Court with a fait accompli, with millions of borrowers having their debts forgiven before any judicial reversal can take effect. By moving quickly and decisively, he hopes to make it politically and practically difficult for the Court to mandate repayment of already-forgiven loans. This strategic gamble appears to be working, as he continues to eliminate billions of dollars in student debt, despite ongoing legal challenges.
In a statement, Biden declared his commitment to making higher education accessible, stating, “From day one of my administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to cancel student debt — no matter how many times Republican-elected officials try to stop us.” However, it is not just Republican officials but the Supreme Court that has sought to curtail his overreach. Biden’s policies are criticized for allowing students to accumulate unsustainable debt, leading to a broader economic burden.
The latest wave of relief targets borrowers in specific categories, including those enrolled in income-driven repayment plans and the Public Service Loan Forgiveness program. Biden’s new SAVE Plan accelerates the path to forgiveness, enabling more borrowers to qualify sooner. However, conservatives point out that this plan ignores those who either didn’t attend college or who worked diligently to repay their loans. Furthermore, analysis from the Penn Wharton Budget Model indicates that Biden’s debt cancellation disproportionately benefits higher-income borrowers, essentially functioning as a regressive tax policy.
This regressive nature of Biden’s student debt cancellation policy exacerbates the divide between college graduates and those without degrees. Non-college graduates, who overwhelmingly support former President Trump, see Biden’s actions as unfairly favoring a demographic that least needs financial assistance. Conservatives argue that Biden’s approach not only misallocates resources but also undermines the principles of fairness and fiscal responsibility, further alienating a significant portion of the electorate.