With speculation surrounding President Joe Biden’s potential reelection and the possibility of Donald Trump returning to the White House, the future of student loan forgiveness programs is uncertain. During Trump’s presidency, major forgiveness plans like Public Service Loan Forgiveness (PSLF) remained intact, but advocates argue that relief for borrowers was slow to come. The Trump administration made efforts to narrow relief options, raising concerns about the future of these programs. Project 2025, a conservative policy proposal, calls for modifications and repeals of federal student loan forgiveness plans, which Trump has voiced support for.
A potential future Trump administration could increase the difficulty for borrowers to receive debt relief without directly changing existing rules or statutes. Calls to eliminate the Education Department and reduce the federal government workforce could disrupt student loan programs. Processing backlogs and billing errors are already common, but a further reduction in staffing could exacerbate these issues. Any modifications or rescinding of student loan forgiveness rules, including PSLF, would likely be initiated through new regulations set by the Education Department, a process that could take years to implement.
While Trump would face challenges repealing programs like PSLF that are authorized by statute, he could direct the Education Department to draft new regulations affecting how certain programs operate or potentially repealing them altogether. Programs like Saving on a Valuable Education (SAVE) and Pay As You Earn (PAYE) could be at risk due to pending legal challenges. Congressional Republicans could potentially be able to pass legislation repealing student loan forgiveness programs if they gain unified control of government, but the likelihood of such legislation passing would depend on various factors.
Student loan borrowers are already facing uncertainty, which is further exacerbated by the upcoming election. If Biden wins reelection, certain forgiveness programs like the SAVE plan remain at risk due to ongoing legal challenges. If Trump were to return to office, additional programs could be in danger, with the extent of that danger being influenced by Congressional control and the willingness of leaders to limit student debt relief plans. Ultimately, the future of student loan forgiveness and repayment programs is up in the air, leaving borrowers with doubts and questions about the security of their financial futures.
