Biden Administration

Emma Camp | From the November 2024 issue

Despite suffering a decisive defeat at the Supreme Court last year, the Biden administration is making a second attempt at sweeping, automatic student loan forgiveness. These new efforts are less ambitious than the previous attempt but still might cost taxpayers billions if enacted.

Student loan forgiveness has long been key to President Joe Biden's education policy. In August 2022, the Education Department unveiled a plan for broad loan forgiveness, seeking to discharge up to $20,000 in federal student loans for individual borrowers earning less than $125,000 and couples earning less than $250,000 annually.

The cost of one-time forgiveness was estimated at $360 billion and was quickly challenged in court. The Supreme Court formally blocked the plan in June 2023, ruling it was an unconstitutional exercise of spending authority.

The Court slapping his hand hasn't stopped Biden. The Education Department's 2022 proposal included major changes to the federal student loan program. Most notably, it created a much more generous income-driven repayment (IDR) plan, allowing........

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