The Biden Administration’s Student Loan Forgiveness Initiative: Challenges and Shortcomings

President Biden’s education policy initiatives during his first term have been marked by ambitious attempts at reform, particularly concerning the federal student loan program, alongside controversial changes to Title IX regulations and administrative missteps. His signature achievement, albeit a short-lived one, was intended to be widespread student loan forgiveness. However, this plan, estimated to cost over $500 billion, was ultimately struck down by the Supreme Court, deemed an unconstitutional exercise of presidential spending power. While this represented a significant setback for the administration’s agenda, other efforts to reshape student loan repayment continued.

Central to Biden’s student loan overhaul was the Saving on a Valuable Education (SAVE) plan, a revamped income-driven repayment program designed to dramatically reduce borrowers’ monthly payments. This program lowered the percentage of discretionary income borrowers were required to pay and shortened the repayment period for some, leading to substantial loan forgiveness after a designated period. Projected to cost nearly $500 billion over a decade, the SAVE plan was also met with legal challenges and ultimately blocked by federal courts. Critics argued that the plan would incentivize students to borrow more, leading to tuition increases and exacerbating the student debt crisis. Furthermore, the program’s financial burden on taxpayers raised significant concerns about its long-term sustainability.

Beyond the SAVE plan, the Biden administration’s efforts to forgive student loan debt, though ultimately blocked, resulted in a substantial increase in the estimated 2024 federal deficit, adding $145 billion. This fiscal impact, coupled with the potential inflationary effects of loan forgiveness, underscored the economic ramifications of the administration’s approach. The blocked attempts at broad loan forgiveness and the introduction of the SAVE plan highlight the administration’s commitment to easing the burden of student debt, but also raise questions about the financial viability and potential unintended consequences of these policies.

While focused on reforming student loan programs, the Biden administration also implemented changes to Title IX regulations, impacting how colleges and universities handle sexual assault allegations. These changes, finalized in 2022, reversed Trump-era policies that emphasized due process rights for accused students. The new regulations removed provisions for live hearings and cross-examination of accusers, instead directing most schools to utilize a “preponderance of the evidence” standard. This lower standard of proof, requiring only that 51% of evidence points to guilt, raised concerns about the potential for wrongful accusations and the erosion of due process protections for students facing serious allegations.

Adding to the administration’s challenges, the rollout of a redesigned Free Application for Federal Student Aid (FAFSA) form was plagued by technical difficulties. These issues resulted in a significant decline in completed applications, hampering students’ access to federal financial aid and institutional aid at many colleges. The 11.2% drop in applications from high school seniors in 2024 significantly outpaced the decline seen during the COVID-19 pandemic, highlighting the severity of the technical problems and their impact on students seeking financial assistance for higher education.

In summary, President Biden’s education policy record presents a mixed bag of ambitious initiatives hampered by legal challenges, administrative setbacks, and controversial policy choices. While his efforts to address student debt burdens demonstrated a commitment to expanding access to higher education and alleviating financial strain on borrowers, the ultimate failure of his broad forgiveness plan and the legal challenges to the SAVE program underscore the difficulties in implementing such sweeping changes. Furthermore, the changes to Title IX regulations raised concerns about due process rights, while the technical issues with the FAFSA application process created significant barriers for students seeking financial aid. These combined factors contributed to a perception of the Biden administration’s education policy as fiscally unsound and administratively incompetent.