Until recently, I had given up on the federal government. 

The Supreme Court had a politically disastrous term, marked by rulings that slashed abortion rights, prevented gun reform, and blocked environmental regulation. The Biden administration, preoccupied by war and inflation, seemed to be moving farther and farther from its domestic agenda. Congress, of course, remained in a state of overwhelming gridlock.

However, over the course of the summer our politicians made significant progress in a number of famously neglected areas. Biden’s most recent policy breakthrough addresses one of the focal points of his campaign: the financial fallout of postsecondary education.

On August 24, the Biden administration made the somewhat surprising announcement that Americans with an annual income of $125,000 or less would be eligible for between $10,000 and $20,000 of student loan debt forgiveness. Of the 48 million Americans with student debt, an estimated 43 million qualify for some form of debt relief. The White House estimates that 20 million Americans will be left with no remaining balance.

Unsurprisingly, reactions to this debt forgiveness program diverged sharply between parties. While many Democrats celebrated the advancement of a progressive priority, Republicans lamented the financial irresponsibility of the policy.

Conservative critics aren’t wrong: the plan has an estimated cost of between $500 billion and $1 trillion, and ultimately, this price will (directly or indirectly) be shouldered by American taxpayers. Republican lawmakers have been quick to point out the irony of a program that provides financial aid to upper-middle class Americans—families who, in some cases, make three times the median household income—while neglecting those who were not able to pursue a college education. 

However, the concept of targeted student loan debt forgiveness could play an important role in the Biden administration’s efforts towards racial and socioeconomic justice. The White House estimates that 60% of the beneficiaries of this program are Pell Grant recipients, which is especially pertinent to lower-income individuals and people of color. Furthermore, the administration claims that roughly 90% of financial relief will go towards those making an annual income of $75,000 or less. (Independent estimates are less generous, but still favorable.)

Many budget and policy analysts claim that Biden’s forgiveness is too generalized—and maybe they’re right. After all, student loan debt tends to be concentrated among higher-income households, meaning that widespread loan forgiveness does little to address the inequities that exist in the student loan lending process. Still, this executive action marks the biggest step taken to address the injustices of student loan debt (which tends to be especially damaging for Black, Brown, and lower-income communities) in years.

The significance of Biden’s plan is both political and symbolic. Through both a massive one-time debt cancellation and structural changes to the process of student loan repayment, this policy radically changes the federal government’s relationship to higher education. 

Previously, student loan lending programs have been a source of governmental profit. However, in recent years, there has been an effort to move away from America’s high-cost, high-return educational model—an effort that is reflected by the current administration’s stance on student loans. Now more than ever, college is seen as a civic good, and, consequently, a federal responsibility. 

As high school students, we are painfully vulnerable to changes in college financing. As such, I am not particularly concerned about whether or not Biden’s plan for student loan forgiveness is too forgiving. What matters is that this program is relevant, popular, and impactful for students like us. Of course, no policy is perfect, but it’s nice to feel some political optimism after a period of so much disappointment. •