Last Wednesday, President Joe Biden announced that his administration was once again canceling federal student loans for 153,000 borrowers.
As he stated, “Folks, I’m happy to have been able to forgive these loans because when we realize and relieve Americans of their student debt, they’re free to chase their dreams.”
While the intention behind such initiatives may be noble, it is important to consider the broader implications and potential unfairness associated with them.
First, the Supreme Court, in June 2023, ruled 6-3 that the president overstepped his authority in forgiving student loans.
Second, the program appears to overlook the individuals who diligently paid off their student loans through hard work and sacrifice.
Moreover, it is unfair to ask these individuals, who may have struggled financially or taken on debt to establish their businesses, to now bear the burden of paying off the student loans of others.
Additionally, college students typically earn significantly higher salaries.
Studies have shown that the wage gap between college graduates and non-graduates ranges from 60 percent to 90 percent.
The program effectively transfers wealth from those with lower incomes to those with higher incomes.
In conclusion, President Biden’s student loan forgiveness program raises valid concerns regarding legality, fairness and equity.
It is crucial for policymakers to carefully evaluate the impact of such initiatives on all individuals affected, while minimizing unintended consequences.
Only then will the rest of us be able to “chase our dreams.”
Eric Mahnerd
Sequim