Could Billion Be Better Spent Than on Student Loan Forgiveness?

Created: JANUARY 24, 2025

Amid concerns about nationwide learning loss, some argue that the Biden administration's $39 billion student loan forgiveness initiative could have been better allocated to address the significant academic decline observed since the pandemic.

Angela Morabito, a former U.S. Department of Education official and spokesperson for the Defense of Freedom Institute, suggests that this substantial sum could have been more effectively utilized to bolster fundamental education skills. "Investing in ensuring every student's proficiency in reading, writing, math, science, and history would have yielded a more impactful return," she argues.

Biden’s $39B student loan forgiveness could face legal battles: ex-DOE official

While the administration celebrates over $116 billion in loan relief provided to over 3 million borrowers, recent reports highlight a persistent decline in student academic performance. Morabito emphasizes the urgency of addressing this "educational emergency," advocating for prioritizing fundamental learning over what she terms a "regressive policy."

President Joe Biden forgives $39 billion in student loan debt

Reports indicate alarming drops in math and reading scores among 13-year-olds. Morabito views the $39 billion decision as a component of a broader strategy to implement widespread loan forgiveness, regardless of legal challenges. She criticizes this approach, suggesting it burdens Americans with financial responsibilities they haven't directly incurred.

The Supreme Court building

Following the Supreme Court's rejection of Biden's initial $400 billion student loan forgiveness plan, this latest announcement has sparked debate. Morabito contends that such decisions require congressional approval, citing the principle of separation of powers. She believes the Biden administration is circumventing Congress, knowing they would likely oppose the measure.

A former Dept. of Education official on student loans

Morabito also points out that simply allocating large sums of money to institutions doesn't necessarily resolve underlying educational challenges. Despite over $122 billion in COVID relief funds for schools, learning loss persists. She advocates for parental choice and well-designed educational programs as more effective solutions.

Learning loss continues post-pandemic

Morabito believes the $39 billion student loan forgiveness decision is primarily politically motivated and anticipates further legal challenges. She maintains that focusing resources on improving academic outcomes would be a more prudent investment.

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