Education Secretary Linda McMahon has sparked a strong debate by calling some college degrees “worthless.” In a Wall Street Journal opinion piece, McMahon criticised former President Joe Biden’s approach to student loan forgiveness, saying it’s unfair to taxpayers and encourages colleges to continue offering degrees that don’t help students find jobs.
This comes at a time when the Trump administration is making big changes to how student loans are handled. As of May 5, the government will resume collections for approximately 1.8 million borrowers. This means people who haven’t been making payments could see their wages garnished and face other penalties.
McMahon’s main argument is that many degree programs don’t actually prepare students for good-paying jobs. Yet, colleges continue offering these programs and encourage students to borrow money through government loans.
She wrote, “Many of the degree-granting programs that qualify for student loans are worthless on the job market, but colleges continue to accept students to these programs and encourage them to borrow to pay for them. Accountability is a two-way street. As we push to hold student borrowers to account, we will also push colleges to be responsible and transparent.”
Why This Matters
Student loan debt is one of the most significant financial challenges in the United States today. By the end of 2024, the total federal student loan debt had reached about $1.64 trillion. That’s more than the GDP of many countries. Under the Biden administration, around $188.8 billion in student loans were cancelled for more than 5.3 million borrowers. While this helped many people, McMahon believes it sends the wrong message.
She called the current system “unsustainable.” According to her, when student loans are forgiven, the debt isn’t really erased—it’s passed on to taxpayers. “Debt doesn’t go away; it gets transferred to others. If borrowers don’t pay their debts to the government, taxpayers do,” McMahon explained.
This, she said, creates a dangerous cycle. Students are encouraged to borrow large amounts for degrees that may not give them real job opportunities. When they struggle to repay the loans, the government cancels the debt, which then becomes a burden on everyone else.
Accusations Against Colleges
McMahon also strongly criticised colleges and universities. She said many of them make false promises to students, convincing them to take on large amounts of debt for programs that have little or no value in the job market. “Colleges are making empty promises to students while pocketing their loan dollars,” she wrote.
She believes colleges should be held more accountable for the quality and value of the education they provide. If a degree doesn’t lead to real job opportunities, the college should not be encouraging students to borrow money to pursue it.
What’s Changing Now
During the COVID-19 pandemic, the Biden administration paused student loan payments and collection efforts. This was intended to provide borrowers with financial relief during a challenging time. However, the Trump administration is now ending that pause. As of May 5, collections will resume for 1.8 million borrowers. This includes individuals who are already in default, meaning they have not made payments for an extended period.
McMahon said this is part of a larger plan to bring responsibility back into the system. Borrowers who have not resumed payments will be required to start again. Those who are in default will get emails from Federal Student Aid telling them to contact the Default Resolution Group. They will need to either make a monthly payment or enrol in an income-driven repayment plan that adjusts payments based on their income.
Support for Borrowers
To make the process smoother, the government is offering several tools to help borrowers manage their payments. These include:
- A loan simulator that helps borrowers understand their repayment options
- An AI assistant to guide borrowers in financial planning
- A call centre operated by Federal Student Aid that is open even on weekends
McMahon said the government is trying to support borrowers as much as possible while also making sure they take responsibility for their loans.
“We are committed to ensuring that borrowers are paying back their loans, that they are fully supported in doing so, and that colleges can’t create such a massive liability for students and their families, jeopardizing their ability to achieve the American dream,” she said.
What Comes Next
This move signals a big shift in how student loans will be handled in the future. The Trump administration aims to hold both borrowers and educational institutions more accountable. While the Biden administration focused on forgiveness and relief, McMahon’s approach is stricter. She wants to make sure loans are only given for degrees that are actually useful, and that both students and colleges are held accountable for their choices.
For millions of Americans, this means they’ll need to rethink their financial plans. Those who thought their loans might be forgiven may now have to start making payments again. Future students may need to think more carefully about which degree programs are worth the investment.
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