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Student Loan Forgiveness: Are We Overlooking the Bigger Picture?

Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, wrote in Barron’s that these latest developments are more like a “Band-Aid” and less like a long-term solution to inflated college expenses.

Mayotte believes none of these policies will tackle the real issue and that until lawmakers “take robust action to incentivize the states to reinvest in higher education, educate consumers to prioritize the return on investment in their college-choice decision, and give colleges and universities some skin in the student debt crisis, this issue will only continue to get worse.”

By reinvesting in higher education, Mayotte says college costs — state and private — should go down.

A New Federal Student Loan Program Will Move Millions Toward Forgiveness

Ms. Harrington made her remarks on March 7 during a webinar hosted by Betsy Mayotte, the founder of the Institute of Student Loan Advisors, a nonprofit group that provides student loan advice.

The recent avalanche of student-loan-relief proposals, while welcome, have been difficult for people to keep track of, Ms. Mayotte said, adding, “It really has caused a lot of confusion among borrowers.”

PERSONAL FINANCE What to do if Supreme Court strikes down Biden’s student loan forgiveness plan

To determine how much your monthly bill would be under different plans, use one of the calculators at or, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

If you do decide to change your repayment plan, Mayotte recommends submitting that application to your servicer well ahead of the timeline for payments to restart. Lenders will likely be overwhelmed when they have to begin collecting loan payments from tens of millions of people again, Mayotte said.

“I have significant concerns that there will be some big servicing delays,” she said.

Student Loan Forgiveness Is a Band-Aid on the College Cost Crisis

As someone who has worked on and studied student loan policy for decades, I appreciate and support these initiatives, especially as they benefit the most vulnerable of student-loan borrowers. But these latest developments start to look like more of a Band-Aid, and less like a long-term solution when given their proper place in history. That’s because none of these new policies, programs, laws and waivers address the actual problem, which is the cost of higher education.