The Biden administration approved an additional $4.28 billion in student loan handouts for nearly 55,000 public service workers, U.S. Secretary of Education Miguel Cardona announced on Friday.
While the administration touts this as a victory for public servants, critics argue it comes at a steep cost to taxpayers and the nation’s financial stability.
Cardona praised the move as a fulfillment of the administration’s pledge to fix the Public Service Loan Forgiveness (PSLF) program.
“Four years ago, the Biden-Harris Administration made a pledge to America’s teachers, service members, nurses, first responders, and other public servants that we would fix the broken Public Service Loan Forgiveness Program, and I’m proud to say that we delivered,” Cardona said in a statement.
He lauded the administration for its focus on making government work for “everyday working people,” highlighting nearly $180 billion in student debt relief granted to almost five million borrowers.
While proponents celebrate these measures, critics warn of the economic implications. The national debt now exceeds 100% of GDP—levels not seen since World War II. The growing debt burden, fueled by such spending initiatives, has raised concerns about the nation’s long-term fiscal health.
The New York Post noted that this debt relief is part of a broader trend of what many see as unsustainable spending under the Biden administration.
This announcement comes months after the Supreme Court struck down Biden’s broader student debt cancellation plan, deeming it an unconstitutional overreach. Despite the ruling, the administration has continued to issue smaller-scale debt relief measures, a strategy critics label as a blatant attempt to bypass the Court’s decision.
Republicans and fiscal conservatives argue that such moves undermine the rule of law and place an undue financial burden on Americans who did not benefit from these programs.
The administration’s latest action follows calls from progressive lawmakers and activists to expand student loan forgiveness. Earlier this month, Senator Dick Durbin (D-IL) urged the administration to expedite relief efforts before the end of its term.
“I’m urging the Biden administration in the closing hours of their administration – the last seven weeks – come to the rescue of these students as quickly as possible,” Durbin said.
Critics have described these calls as a last-ditch effort to maximize benefits before a shift in political power.
President-elect Donald Trump has vowed to roll back Biden’s student loan forgiveness initiatives upon taking office. According to Politico, Trump’s transition team is already exploring ways to unwind various Biden-era programs that eased or expanded paths to loan forgiveness.
“President-elect Donald Trump is poised to pull the plug on President Joe Biden’s yearslong push to cancel student debt for tens of millions of people as Republicans sweep into power in the coming months,” Politico reported.
Trump’s allies are reportedly crafting plans to reinstate stricter policies and shift the focus away from large-scale debt forgiveness.
The debate over student loan forgiveness remains highly polarizing. Supporters view it as a necessary step to address the financial struggles of public servants and other borrowers. Opponents, however, see it as a financially irresponsible policy that prioritizes select groups at the expense of taxpayers and the broader economy.