Trump-Era Education Chief Slams Biden’s Loan Forgiveness: “Colleges Profited Massively”

Former Trump education official Linda McMahon is taking aim at President Biden’s student loan forgiveness policies, calling them irresponsible and unfair to taxpayers — while accusing colleges of cashing in on the chaos.

In a Wall Street Journal op-ed, McMahon defended the Department of Education’s decision to resume debt collections starting May 5, targeting roughly 5.3 million borrowers who are in default. She didn’t mince words, blaming the Biden administration for enabling massive debt accumulation under the false promise of blanket forgiveness.

McMahon argued that colleges — despite their nonprofit status — have benefited enormously from federal student loans.

“For years they’ve hiked tuition and built up billion-dollar endowments, all while students graduate buried under six-figure debt,” she wrote.
“Colleges and universities call themselves nonprofits, but they’ve profited massively off the federal subsidy of loans.”

She stressed the need for accountability — not just from borrowers, but also from higher education institutions. “As we push to hold students accountable, we will also demand that colleges be transparent and responsible.”

Student loan payments were first paused in 2020 under President Trump as part of COVID-19 relief efforts. But McMahon criticized Biden for extending the pause and pushing sweeping forgiveness programs that she said lacked legal authority.

“Biden dangled the carrot of loan forgiveness in front of young voters,” McMahon said, arguing it led many to take on more debt with no real plan for repayment.

She announced a full reversal of what she called “zero-interest, zero-accountability” policies. Moving forward, borrowers in default will face serious consequences — from lowered credit scores to wage garnishment.

The Education Department confirmed that about 1.8 million borrowers will be moved into repayment plans as collections restart in May. McMahon emphasized that the decision isn’t about being harsh — it’s about restoring fiscal responsibility.

“Borrowing money and not paying it back isn’t a victimless offense. Debt doesn’t vanish — it shifts to taxpayers,” she said.

She added that unlike car or mortgage loans, student loans come with a public cost. The goal, she said, is to make sure borrowers are supported in repayment, and that colleges can no longer saddle students with unaffordable debt.

The numbers tell a troubling story. Over 42.7 million Americans now owe more than $1.6 trillion in federal student loans, according to the Department of Education. The agency warned the system is heading toward a “fiscal cliff.”

Even more alarming, over 5 million borrowers haven’t made a single payment in more than a year — with some skipping payments for over seven years.

McMahon’s message is clear: forgiveness without accountability has backfired — on borrowers, taxpayers, and the nation’s finances. With loan collections set to resume, her approach signals a tougher stance and a call for deeper reforms within higher education.

Source: NYPOST – Trump’s education boss reveals greedy truth behind Biden’s student loan forgiveness: ‘They have profited massively’