Opinion: While a short-term fiscal burden, Biden's student loan forgiveness was long-term relief for Americans

Student loans are one of the most grueling parts of the college process in the United States. They are the result of a failed higher education system, where tuition has risen faster than the average income. For many families, entering the workforce right after high school may seem like the smarter option, but the reality is that without a college degree, people are often placed at a disadvantage in American society. This dilemma leaves millions of American students taking out loans every year.

President Biden addressing the press in regard to his proposal to cut billions in student loan debt, Al Drago/The New York Times.

Student loans are borrowed money from the federal government that must be repaid after college. By the end of their college careers, this debt can range from $10,000 to over $100,000, making it difficult for graduates to build financial stability. It also does not help that the job market is highly competitive, with more graduates than available positions. By 2022, one in every four adults under 40 was still paying off student loans.

President Biden understood the enormous burden of student debt, so he forgave loans for nearly 5 million Americans-about $175 billion in total, which is, according to the Pew Research Center, the most of any president in history. This relief helped working Americans contribute to the economy in other ways, such as starting families or buying homes, opportunities that were once out of reach while burdened by debt. Many of the beneficiaries were public service workers in lower-paid but essential jobs. Others included people with disabilities and students who were defrauded by their schools, who both lacked the financial ability to repay the loans. For both of these groups, forgiveness offered long-overdue justice.

In addition, Biden’s forgiveness also prevented people defaulting on their loans, which would have stimulated uncontrollable economic instability. In other words, by targeting the millions of American debtors for loan relief, Biden’s administration ensured that American citizens will not become so swamped in their debt that they will have to shut themselves out from the economy. By forgiving their debt, these former students are now able to support the economy in ways they couldn’t before, like eating at a restaurant or buying new furniture.

Overall, Biden’s forgiveness plan gave millions of Americans a financial break, which prevented economic crises tied to loan defaults from happening. It may seem like the US Government lost money from the action, but in the long term, it will be beneficial for the economy.