Why Student Loan Relief Fixes Nothing—and Could Make Everything Worse

How much student loan debt would Americans hold in three years if President Joe Biden instituted his forgiveness plan today? The exact same amount they hold today.

The reason is simple: Forgiveness does nothing to address the structural causes of the $1.6 trillion in student debt held by the public, according to economists and education experts who spoke with the Washington Free Beacon. Canceling debt won’t stop future students from borrowing tomorrow, nor can Biden wave a wand and make college cheaper.

The White House is considering forgiving up to $10,000 of student loan debt per person, according to multiple reports. Should Biden follow through with the plan, a reduction in outstanding student loan debt wouldn’t last long. Economists say the total amount owed to the U.S. government would return to $1.6 trillion by 2026 under a $10,000 forgiveness program.

Biden’s consideration of loan forgiveness comes as his administration has seen approval ratings plummet, with younger voters increasingly losing trust in his presidency just months before the midterm elections. No matter what Biden’s rationale for the move may be, economists say any forgiveness scheme could actually exacerbate the problem for current and future students by incentivizing schools to raise tuition. – READ MORE