Is Biden's loan forgiveness plan good "public policy"?

Federal student debt is a massive burden on millions of Americans and President Biden’s recent forgiveness of between $10k-$20k of loans is an encouraging move. Unfortunately, it’s bad public policy.

Some independent organizations have estimated the costs of this forgiveness to be upwards of half a trillion dollars. While individuals with these student loans will benefit, government intervention ought to do more than simply help a subset of the population. The best public policies advance larger societal goals around equity, justice, sustainability, efficiency, or liberty. While Biden’s loan forgiveness Executive Order might purport to address some kind of fundamental injustice, it does nothing to take on college affordability for the future in any semblance of a sustainable fashion.

Given the costs of this program, the White House could have done something that could advance broader national goals and really take on a problem we face as a country: access to college. Last Spring, New Mexico made public colleges tuition free for all residents, thanks to an infusion of $75 million from the federal government. I calculated in a recent op-ed that Massachusetts (a much larger state with a bigger public university system) could follow suit and make public college free for $1 billion per year.

While that number may sound high, not really so muc

h in light of the $500 billion Biden is spending on loan forgiveness. Massachusetts is a pretty average state in terms of population, so it’s a fair estimation that the $1 billion per year it would take to make public college free, multiplied by 50 states, could mean a $500B investment could send all Americans to college for free for 10 years!

When universal free public education swept this country in the 19th century, the percentage of Americans who were literate skyrocketed from 5% to 70%.  New Mexico’s choice to extend access to free public college likewise has transformative potential to open access to poor or otherwise disadvantaged residents, to give skills, knowledge, training and expertise to prepare them for the jobs of the future. Dr. James Holloway, University of New Mexico provost, has called college a “public good” that all residents deserve access to, no matter their financial standing.

With national college enrollment on the decline as the U.S. population rises, it is critical to look at barriers. The research is clear: Money is consistently reported by prospective and current students as the biggest hurdle in starting and finishing college. The vast network of financial aid providers, banks, scholarship programs and college admissions offices try to help, but nothing says easy more than free.

Senator Bernie Sanders campaigned on free college when he ran for President of the United States. His plans were considered too bold and expensive. But those plans were cogent as public policy, they promised to remove barriers to access and educate our workforce of tomorrow.

Let’s take the responsibility for paying for educating our residents off the backs of students and the families and cover the costs together to ensure a fair and equitable higher education system

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