Janice R. Andrews
In a bold final act before leaving the White House, President Joe Biden approved the cancellation of student loans for an additional 150,000 borrowers, bringing total forgiveness under his administration to an unprecedented $183.6 billion. With this milestone, Biden has forgiven more student debt than any president in U.S. history, providing relief to over 5 million Americans.
Although Biden’s campaign promise of widespread student loan forgiveness faced legal obstacles, his administration utilized existing federal programs to deliver targeted relief. Critics argue this approach exploited legal loopholes to sidestep court rulings that blocked broader forgiveness plans.
Leveraging Existing Programs
The Education Department’s latest cancellations heavily relied on the borrower defense program, which provides relief to students defrauded by colleges. Initially established in 1994, this program gained prominence during the Obama administration following scandals involving for-profit colleges. Most of the recent cancellations focused on students from defunct institutions like CollegeAmerica and Stevens-Henager College, which had misled students about job prospects and loan terms.
Another major avenue for relief has been the Public Service Loan Forgiveness (PSLF) program, which cancels debt for public servants after 10 years of qualifying payments. Before Biden’s reforms, the program was plagued by a 99% rejection rate due to complex eligibility rules and administrative errors. By streamlining the process and relaxing requirements, the administration enabled over 1 million public servants to have their loans forgiven.
A Divisive Strategy
While Biden celebrated these actions as steps toward reducing student debt and addressing systemic failures, critics accused him of overstepping his authority. “My administration has taken historic action to reduce the burden of student debt, hold bad actors accountable, and fight for students across the country,” Biden said in a statement.
Republicans, however, have argued that student loan forgiveness unfairly shifts the financial burden onto taxpayers, including those who never attended college or already repaid their loans. Rep. Virginia Foxx, R-N.C., described Biden’s actions as an abuse of power, declaring, “The jig will finally be up” once President-elect Donald Trump assumes office.
What Lies Ahead for Borrowers
As Republicans prepare to take control of the White House, the future of Biden’s student debt relief measures hangs in the balance. Trump has previously denounced large-scale forgiveness as “vile” and illegal, though his exact plans for student loans remain uncertain.
Conservative policy proposals, such as those from the Heritage Foundation, advocate eliminating PSLF and narrowing borrower defense protections. Similar efforts during Trump’s first term were blocked by Congress, but Republican control of both chambers may change the outcome.
Biden’s Milestones Amid Challenges
Despite opposition, the Biden administration accomplished significant milestones in student debt relief. Temporary pandemic-era reforms corrected issues for borrowers previously denied forgiveness due to technicalities or servicer errors. For instance, many borrowers who were wrongly placed in forbearance saw those periods count toward PSLF eligibility.
However, Biden’s proposed relief of up to $20,000 for more than 40 million Americans, a cornerstone of his campaign, was ultimately struck down by the Supreme Court. This left millions without the widespread relief they had hoped for.
Borrowers Caught in Transition
While many beneficiaries of Biden’s targeted relief programs have expressed gratitude, others face uncertainty about what lies ahead. “This has been life-changing,” said one borrower whose loans were forgiven through PSLF. For those still in repayment, the prospect of stricter rules under a new administration is a looming concern.
With Republicans vowing to roll back Biden’s changes, borrowers fear tighter restrictions and reduced access to relief. Biden’s last-minute actions may stand as a final reprieve for many before potential policy reversals.
A Legacy of Student Debt Relief
President Biden’s tenure is defined by his efforts to alleviate the student debt crisis, using every available tool to provide relief despite legal and political hurdles. Forgiving $183.6 billion in student loans, his administration reshaped the landscape of debt relief in the United States.
As President-elect Trump takes office, the debate over student loans is set to intensify. Biden’s closing remarks highlight his commitment: “This is about justice for students and accountability for institutions that failed them.” The lasting impact of his actions will depend on whether these reforms withstand the political challenges ahead.
