Biden’s Student Loan Fiasco: A Legacy of Chaos and Broken Promises

The narrative pushed by Democrats and their media allies often paints President Donald Trump as a harbinger of chaos. However, a closer look at the policies and outcomes of the Biden administration reveals a different story, one where former President Joe Biden arguably deserves the "chaos agent" moniker far more. While the southern border crisis, a self-inflicted wound of unprecedented illegal crossings, dominated headlines and became a major issue in the 2024 election, another realm suffered equally from Biden’s policies: student loans.

Biden’s handling of student loans was characterized by a series of grand promises, ultimately leading to widespread confusion and financial hardship for millions of Americans. Throughout his four years in office, Biden repeatedly pledged either outright loan cancellation or drastically reduced payment plans, offering a beacon of hope to over 40 million federal student loan borrowers. This promise, coupled with the extension of a COVID-related pause on loan payments (allowing borrowers to forgo payments without accruing interest until the fall of 2023), essentially created a new entitlement program – one shouldered by taxpayers. Biden fostered the perception that borrowers should be absolved of the debts they willingly incurred.

This approach flew in the face of legal precedent. Major court decisions, including rulings by the U.S. Supreme Court, struck down Biden’s initial $400 billion loan forgiveness program as unconstitutional. The courts affirmed that the executive branch lacked the authority to unilaterally erase student debt on such a massive scale. Despite these legal setbacks, Biden remained undeterred, attempting to circumvent the court rulings and continuing to dangle the promise of future debt cancellation before borrowers. These subsequent programs, however, suffered the same fate, either overturned by the courts or abandoned by Biden’s Education Department after Trump’s reelection.

The constant back-and-forth, the broken promises, and the legal uncertainties created a climate of immense confusion and uncertainty for borrowers. They were left in a state of limbo, unsure of their financial obligations and unable to plan for the future. This is the true chaos that Biden unleashed.

Now, the Trump administration is attempting to restore order to the student loan repayment system, taking the seemingly radical position that loans should, in fact, be repaid. On May 5th, Trump’s Education Department resumed collecting on defaulted student loans – a practice that had been suspended since the beginning of the COVID-19 pandemic five years prior.

U.S. Secretary of Education Linda McMahon succinctly captured the essence of the issue: "The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers. Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly."

This commitment to responsible management of the student loan program offers a glimmer of hope after years of uncertainty and mismanagement. However, the damage has already been done. Many student loan holders, having been led to believe that their debt wasn’t truly their problem, are now facing difficult financial situations that could severely impact their credit scores if they fail to address their defaulted debt immediately.

The statistics paint a grim picture. According to a recent TransUnion report, only 38% of borrowers are current on their student loans, while a record high of 20.5% of student loan borrowers are seriously delinquent, meaning they are at least 90 days overdue on their payments. The Trump administration has revealed that over 5 million borrowers have not made a payment in more than 360 days, placing them at risk of wage garnishment.

As these borrowers grapple with the harsh realities of their debt obligations, Republicans in Congress are working on legislative solutions to address the underlying issues within the student loan system. These efforts include capping the amount of loans individuals can take on and limiting the number of available income-driven repayment plans. This approach recognizes that the legislative branch, not the executive branch, is the appropriate venue for determining the parameters of costly student loans.

Biden and Vice President Kamala Harris made promises they knew they couldn’t keep to borrowers in an attempt to secure their votes. This political gambit ultimately failed. However, the chaos they inflicted on millions of Americans remains. The legacy of Biden’s student loan policies is one of broken promises, legal uncertainty, and financial hardship for borrowers. It serves as a stark reminder of the dangers of using student debt as a political tool and the importance of responsible governance and adherence to the rule of law. The Trump administration now faces the daunting task of cleaning up the mess left behind and restoring stability to the student loan system. Whether they will succeed remains to be seen, but one thing is clear: the Biden administration’s handling of student loans stands as a clear example of policy-induced chaos with far-reaching consequences.