Education Secretary Linda McMahon Blasts Biden’s “Misleading” Student Loan Forgiveness Scheme
WASHINGTON, D.C. — Education Secretary Linda McMahon is putting an end to what she calls one of the Biden administration’s most deceptive financial schemes: the mass student loan forgiveness program that has already shifted $136.6 billion in debt onto the shoulders of taxpayers.
In a hard-hitting Wall Street Journal op-ed published Monday, McMahon accused the Biden administration of misleading borrowers, ignoring the Constitution, and enacting sweeping forgiveness policies without proper legal authority — all while forcing working-class Americans to pay for the college degrees of others.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” McMahon wrote.
“The executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.”
What Changes May 5? Accountability Returns
The Department of Education will resume collections on defaulted student loans starting May 5, ending the Biden-era freeze that began in March 2020 under pandemic emergency measures.
- An estimated 5 million borrowers who haven’t made payments in over four years will be impacted.
- The department will reintroduce interest accrual and enforce payment obligations in cooperation with the Department of the Treasury.
- The aim: to restore fiscal responsibility, protect the integrity of the loan program, and stop rewarding non-repayment.
The Biden Workarounds: Executive Overreach by Design
Biden first announced his sweeping student loan forgiveness plan in August 2022, just months before the midterm elections — a move critics say was a transparent ploy to buy votes from younger Americans.
That plan offered:
- Up to $10,000 in debt cancellation for individuals earning under $125,000
- Up to $20,000 for Pell Grant recipients
- A total projected cost of over $400 billion
But in June 2023, the Supreme Court struck down the program in a 6–3 decision, declaring that Congress—not the executive branch—has the power of the purse.
Undeterred, the Department of Education unilaterally restructured repayment rules to forgive an additional $39 billion—counting non-payments as if they were payments, while accruing no interest and requiring no repayment on missed amounts.
In early 2024, Biden went further:
- $5 billion canceled for 74,000 borrowers in January
- Promised forgiveness for anyone with under $12,000 in debt who’s been in repayment for 10 years
McMahon: A Return to Rule of Law
Secretary McMahon’s tenure signals a sharp course correction from the Biden era. Her department’s new policy will:
- End the zero-interest, zero-accountability era
- Restore lawful oversight and enforcement of repayment obligations
- Push back against political misuse of financial programs
“Going forward,” McMahon wrote, “the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law.”
The Bottom Line
After years of unconstitutional executive actions and dubious financial policy, the Biden student loan giveaway is being reeled in. McMahon’s move to resume collections and halt blanket cancellation without authority marks a return to fiscal sanity, ending a costly chapter of politicized debt relief.
Starting May 5, there will be no more free passes — and no more hiding the bill from taxpayers.
