Trump’s Election Win Casts Uncertainty on Student Loan Forgiveness

Millions of student loan borrowers who were hoping for relief under President Joe Biden’s programs have had their plans hampered by the election of President-elect Donald Trump. Borrowers like Savannah Britt are concerned about repaying their large loans without government support because the future of student loan forgiveness in the US is now unclear.

Britt had thought that Biden’s planned loan forgiveness proposal would provide relief from her $27,000 in student loan debt from her tenure at Rutgers University. But those dreams are now drained  as Trump and Republican-led states oppose the program. “The dream has vanished with this new regime. Frustrated by the sudden stop, Britt remarked, “It’s shot.”

Biden’s loan forgiveness programs have long been criticized by Republicans, and states run by Republicans have sued to stop broad debt cancellation. Trump has not yet stated his position on the matter, but during the campaign he called Biden’s proposal a “total catastrophe” and said it failed the youth it was meant to assist.

Last year, the Supreme Court terminated Biden’s initial plan to cancel up to $20,000 for qualified borrowers and legal challenges also caused later, more limited measures to stall. Despite these obstacles, the Biden administration has improved existing programs, especially for public service workers, and has forgiven loans for about 5 million Americans.

Trump’s support for Project 2025, a plan to restructure government, raises the possibility that the federal government could stop funding student loans. According to this strategy, the US Department of Education, which manages the $1.6 trillion student loan portfolio, should be abolished, and repayment schemes started by Biden should be terminated.

But doing so would necessitate Congressional approval and would not address the issue of loan management. Uncertainty increases financial strain for debtors like Sabrina Calazans, who owes about $30,000. Calazans suggests that borrowers use the Federal Student Aid website to stay informed.
One thing is certain despite the uncertainty surrounding the future of student loan forgiveness: borrowers will need to remain alert and knowledgeable to deal with the shifting conditions.