Nature

Biden’s student loan forgiveness makes reform urgent


President Biden announced a plan to cancel between $10,000 and $20,000 in federal student loans for tens of millions of borrowers. The program will cost more than $300 billion and will primarily benefit college-educated households that don’t need help. But its most pernicious consequence is the precedent it sets. Colleges are sure to exploit the promise of repeat cancellations by raising tuition fees and opening new degree programs of dubious value.

The federal government is on track to disburse $1 trillion in new student loans over the next decade. The Committee for a Responsible Federal Budget estimates that it will take less than a decade for the student loan stock to recover to its current level. The candidates for the next Democratic presidential primary will try to outdo each other with new promises of forgiveness.


Wj

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