Written by Matthew James.
Joe Biden’s decision to forgive student loans for 150,000 borrowers has stirred a lot of conversation, and it’s easy to see why. With just days left in his presidency, this sweeping move adds to an already divisive issue about fairness, government spending, and the value of higher education. While some applaud the move as overdue relief for struggling Americans, others see it as a political maneuver that penalizes those who played by the rules.
Who Benefits from This Decision?
The 150,000 borrowers who received relief fall into specific categories:
- Victims of Fraudulent Schools: Nearly 85,000 borrowers attended institutions accused of misleading students about job prospects or providing low-quality education. Think about people attending for-profit colleges that promised high-paying jobs only to leave students with mountains of debt and useless degrees.
- Borrowers with Disabilities: Over 61,000 individuals who are permanently and totally disabled also had their loans forgiven. For these Americans, navigating life with limited earning potential made repayment nearly impossible.
- Public Service Workers: About 6,100 borrowers in public service roles—such as teachers, police officers, and social workers—also benefited.
On paper, these groups seem deserving of help. But the devil is in the details. For example, what happens to those who didn’t qualify, or worse, those who repaid their loans despite similar hardships?
The Hidden Costs to Working Americans
Here’s the uncomfortable truth: forgiveness isn’t free. While Biden proudly announced his administration has forgiven more debt than any other in history, someone’s footing the bill. That “someone” is the taxpayer—people who either didn’t attend college, went to affordable schools, or responsibly paid off their loans.
Imagine working a blue-collar job, budgeting carefully to avoid debt, and now you’re indirectly paying for someone else’s degree. It’s a tough pill to swallow for many middle- and working-class Americans. Critics argue that this move punishes fiscal responsibility while rewarding poor financial decisions or predatory institutions.
Was This All About Politics?
It’s hard to ignore the timing. Biden’s announcement came just days before Donald Trump was set to take office. Some see this as a last-ditch effort to cement a progressive legacy or secure favor with younger voters, particularly Millennials and Gen Z.
Remember the student loan forgiveness plan Biden announced last August? It promised broad relief to millions but was struck down by the Supreme Court. Undeterred, Biden’s administration found legal loopholes to continue smaller-scale forgiveness. While this might seem like resilience, opponents see it as skirting the law for political gain.
Why Critics Are Calling It Unfair
Biden’s critics argue that this kind of blanket forgiveness overlooks key issues:
- No Refunds for Responsible Borrowers: If you paid off your loans in full, you’re out of luck. There’s no retroactive reward for doing the right thing.
- Doesn’t Fix the Root Problem: The cost of higher education keeps climbing. Forgiving loans without addressing why college is so expensive is like putting a Band-Aid on a broken arm.
- Encourages Risky Borrowing: If students believe future debt will be forgiven, what’s stopping them from taking on even more?
For example, a family who saved for years to pay for their child’s education might feel cheated, knowing their neighbor’s kid borrowed freely and now faces no consequences.
Is There a Better Way?
Some suggest targeted reforms could be a more effective solution. For instance:
- Accountability for Schools: Institutions that mislead students or fail to provide value should share the burden of loan forgiveness.
- Incentivizing Financial Literacy: High school students could benefit from courses about loans, interest rates, and budgeting before taking on debt.
- Capping Tuition Costs: Government intervention to control skyrocketing tuition could prevent future crises.
Our Take
Biden’s decision to forgive loans may look like a win for borrowers, but the broader implications paint a murkier picture. It shifts the financial burden onto taxpayers, ignores those who responsibly paid off their debts, and does little to solve the systemic issues driving student debt in the first place. Worse, it sets a dangerous precedent where personal accountability takes a backseat to government intervention.
This isn’t just bad policy—it’s a slap in the face to every hardworking American who made sacrifices to avoid or responsibly handle debt. We need solutions that tackle the root problems of higher education costs, not political stunts that leave everyone else holding the bag.
