The Biden administration approved an additional $4.28 billion in student loan handouts for nearly 55,000 public service workers, U.S. Secretary of Education Miguel Cardona announced on Friday.
While the administration touts this as a victory for public servants, critics argue it comes at a steep cost to taxpayers and the nation’s financial stability.
Cardona praised the move as a fulfillment of the administration’s pledge to fix the Public Service Loan Forgiveness (PSLF) program.
“Four years ago, the Biden-Harris Administration made a pledge to America’s teachers, service members, nurses, first responders, and other public servants that we would fix the broken Public Service Loan Forgiveness Program, and I’m proud to say that we delivered,” Cardona said in a statement.
He lauded the administration for its focus on making government work for “everyday working people,” highlighting nearly $180 billion in student debt relief granted to almost five million borrowers.
While proponents celebrate these measures, critics warn of the economic implications. The national debt now exceeds 100% of GDP—levels not seen since World War II. The growing debt burden, fueled by such spending initiatives, has raised concerns about the nation’s long-term fiscal health.
The New York Post noted that this debt