With Donald Trump’s second term on the horizon, many are questioning what his administration's approach to student loan forgiveness might mean for millions of borrowers.
Throughout his first term, Trump’s administration took a conservative approach to federal debt relief. Although the administration did take steps to make repayment easier, Trump was not in favor of forgiving student loans in their entirety.
Trump administration policies mostly focused on narrowing federal spending, even considering a reduction in the Department of Education's role in managing federal student loans. In fact, some officials under Trump’s administration suggested restructuring or even eliminating certain repayment programs.
In response to President Biden’s debt relief policies, Trump has expressed strong opposition, calling broad relief programs "vile.” Trump is unlikely to continue Biden’s targeted debt relief efforts or broader initiatives, which have been contentious in Congress and the courts.
Changes to Public Service Loan Forgiveness (PSLF)
One area of student debt relief particularly vulnerable to changes under Trump would be the Public Service Loan Forgiveness (PSLF) program. PSLF, which offers forgiveness for those who work in public service after 120 qualifying monthly payments, has been a lifeline for many who serve in education, healthcare, and government roles.
However, the PSLF program has faced ongoing challenges, with many applications denied due to bureaucratic hurdles. During Trump’s first term, his Department of Education processed these applications at a slower rate, with reports of over 99% of PSLF applications initially denied.
Under a second Trump term, PSLF might see further restrictions or even face the possibility of being phased out. Trump’s previous budget proposals included eliminating PSLF for new borrowers, arguing it places a heavy financial burden on taxpayers.
In light of this, many advocacy groups, such as the Student Borrower Protection Center, have voiced concerns, emphasizing that ending PSLF would impact people who dedicate their careers to public service.
The Future of Biden’s Student Debt Relief Efforts
President Biden’s administration has implemented various targeted debt relief policies, particularly the SAVE income-driven repayment plan and targeted cancellation efforts benefiting nearly 5 million borrowers. Biden also aimed to cancel up to $10,000 in student loans for most borrowers, or up to $20,000 for Pell Grant recipients. However, his efforts have faced substantial legal and political challenges.
With Trump in office again, many of Biden’s initiatives would likely face additional scrutiny. Trump’s vocal criticism of Biden student debt relief efforts hints that he may either block or reverse these initiatives. Trump has argued that broad student loan forgiveness is legally questionable, referencing court rulings that have halted some of Biden’s relief actions.
Without supportive legislation, student loan borrowers may face further delays and setbacks in debt relief. For those counting on the SAVE plan or other Biden-era programs, Trump’s second term could mean ongoing uncertainty.
Looking Ahead: What’s Next for Borrowers?
For now, many student loan borrowers are in a waiting game. With Biden’s debt relief measures under legal scrutiny and the political landscape shifting, the possibility of Trump’s second term raises questions about the future of student loan forgiveness.
Public service employees, income-driven repayment plan participants, and those hoping for broader debt relief may find fewer options under a Trump administration.