In June, the Supreme Court struck down the White House’s plan to cancel $430 billion in student loan debt. Biden’s debt cancellation plan would have been the biggest student debt handout in history, had it not been wildly unconstitutional.
Undeterred, the Biden administration has rolled out smaller debt relief programs in the wake of the Supreme Court’s decision, and it has announced that it is in the process of developing an even larger debt cancellation plan in the near future, one that will likely also be challenged in court.
However, as important as these legal and political battles are, a much more significant policy has also been put into place by the White House. And unlike the others, it has received very little attention from the press or members of Congress. If it is allowed to remain in place, it will cost, at minimum, hundreds of billions of dollars over the next two decades. Over a long enough period, it will likely surpass $1 trillion, making it the most expensive debt cancellation plan ever created.
The reason so few people are talking about the new debt cancellation plan is because it’s buried in a new student debt repayment plan. Additionally, the debt forgiveness would happen over time, not in one fell swoop.
BASE PHOTO CREDIT: Gage Skidmore/Flickr’s Creative Commons. CC BY-SA 2.0.
Justin Haskins is a New York Times bestselling author and political commentator, the president and founder of The Henry Dearborn Liberty Network, and the director of the Socialism Research Center at The Heartland Institute, a national free-market think tank. (His work here does not necessarily reflect the views of The Heartland Institute.) Follow him on Twitter @JustinTHaskins.