Student Loan Debt and the Myth of the Meritocracy

By Afifa Chaudry and Dr. Benjamin M. Drury

When the US Supreme Court has struck down the Biden administration’s plan to forgive $430 billion in student debt, this without a doubt sent shockwaves of anxiety over borrowers who will have to resume loan payments in October. Most borrowers we have spoken with express disappointment, confusion, frustration, sadness, anger, rage, and exhaustion over the ongoing legal dispute playing out in front of their eyes. Supporters of the Biden Administration’s plan to reduce and ultimately remove the burden of financial debt from the shoulders of American families were equally distraught over the news of the ruling. If you were like most of us and had no earthly idea of exactly what the debt relief plan was, what was on the table was the White House had proposed forgiving $10,000 in student debt for certain income thresholds and up to $20,000 for Pell Grant recipients. Using the 2003 Heroes Act, the Biden Administration intended to allocate federal dollars intended to assist in the recovery with the powers granted to the Secretary of Education by the Act to change student aid laws during a national emergency. However, the Supreme Court ruled that the president had “exceeded his executive authority” in a 6–3 decision split along party lines. In response, President Biden outlined a new plan to ease the burden of student debt, this time using the Higher Education Act of 1965.

A new plan was introduced that would also include a 12-month repayment program forgiving late payments between October 2023 and September 2024. While borrowers await details of the new plan, the Department of Education finalized the Saving on a Valuable Education (Save) plan, expected to help borrowers save over $1,000 per year on payments.

As someone who owes over $200,000 in student loan debt, the recent decision by the US Supreme Court to strike down the Biden administration’s plan to forgive a substantial amount of student debt has left me feeling frustrated and disillusioned. The burden of student loan debt has been weighing heavily on my shoulders for years, and the hope of receiving some relief from this financial hardship has now been shattered. When I made the decision to pursue higher education, I was told that it was an investment in my future. I believed that obtaining a degree would open doors to better job opportunities and financial stability. However, the reality has been far from what I expected. Instead of enjoying the benefits of my work and dedication implied throughout my education as the “goal” and the “prize” to keep my eyes on during the challenges and trials associate with higher education, I find myself suffocating under a mountain of debt, with little hope of ever fully repaying it. When the Biden administration first rolled out their original plan to forgive a portion of student debt, there was a glimmer of hope for borrowers trapped in this cycle of indebtedness. When it comes to choosing between making repayment possible or removing student loan debt, most borrowers would likely choose the former. Most Americans have bought into the (frequently false) notion that success comes as a direct result from hard work, which is what led them to education in the first place. American society places a high premium on education as a prerequisite for employment. Employment is then connected to other stabilizing features associated with living in the United States like insurance and retirement plans. Like everything else in this country that tastes great and is less filling, education costs money. If you are unable to pay, you are unable to play. Placing the stick higher and higher in the air is not the answer to creating an equitable society where people can live closely with one another and not be paranoid of each other and quick to judge each other.

Student loan debt is a problem in the United States for every member of society. People fail to see just how far the depths of student loan debt extends in America. Student loan debt reaches deep into the fabric of our society…far beyond the realm of personal finance. Student loan debt affects our mental health, limits our life choices, and undermines our faith in an organization of social institutions that — when working properly and according to their intent — should be supporting and empowering all citizens. What we have instead are millions of people owing trillions of dollars to the federal government for an education that some have yet to see a full return on investment. We need a comprehensive and meaningful student debt relief plan. We need to rely on policymakers and legislators to hear the call and recognize the urgency of addressing this crisis. We need these representatives of democracy put in place through an unfettered election by the citizens of this country to provide concrete solutions and alleviate the burden faced by millions of borrowers across the country. When it comes to repayment, some borrowers who are working and surviving in the aftermath of the pandemic can begin the repayment process. For others, some might be sick, unemployed, depressed, working four part-time jobs, or forcing themselves to stay in an abusive relationship now that they fear a return of a bill that has been absent from their monthly family budget for over three years now.

What this most recent Supreme Court decision highlights are inherent flaws in the American higher education system, which forces individuals to shoulder a tremendous financial burden to have a shot at upward mobility and economic stability. While President Biden has outlined a new plan to provide some form of relief through the Higher Education Act, it is disheartening to know that it will take longer to materialize and that it may not offer the level of support that was initially promised. The uncertainty surrounding the future of student debt relief only adds to the anxiety and frustration that millions of borrowers already experience daily. As a campaign promise for the Biden Administration, the threat to their stability come next November comes into question. What is needed is a comprehensive plan to address the social problem of our generation and enable millions of Americans to move forward in life…and force higher education to rethink their increasingly high tuition rates.