A second term for Donald Trump could lead to a significant rollback of federal student debt relief efforts, given his previous policies and recent statements. Trump has previously aimed to limit debt cancellation and proposed eliminating the Public Service Loan Forgiveness (PSLF) program, which forgives loans for those working in public service. Conservative groups are pushing him to follow similar strategies, setting the stage for potential changes in several major debt relief programs.
Biden’s Forgiveness Programs at Risk
The Biden administration’s alternative student debt relief plan, known as “Plan B,” aims to cancel debt for borrowers facing hardship or long-term repayment burdens. Yet, this program has been stymied by legal battles led by GOP attorneys general, and Trump’s Department of Education could choose to discontinue the proposal altogether.
Another key Biden initiative, the SAVE repayment plan, which caps payments at 5% of a borrower’s discretionary income, faces similar legal threats. Trump’s administration could halt defense of the program in court, likely ending its implementation. The decision also affects the 8 million borrowers currently enrolled in SAVE, who are set to resume repayments unless further forbearance is extended.
Borrower Defense Protections
The borrower defense rule, enabling students defrauded by their schools to seek loan relief, was significantly limited by Trump’s first-term Education Secretary Betsy DeVos. Biden has since aimed to broaden access to borrower defense, but lawsuits have kept these rules from taking full effect. A Trump administration could reimpose stricter eligibility, aligning with recommendations from conservative groups like the Heritage Foundation.
Public Service Loan Forgiveness (PSLF) Uncertainty
PSLF, designed to forgive loans for public servants after a decade of qualifying payments, saw a 99% denial rate under Trump’s prior administration due to rigid rules. The Biden administration eased requirements, helping forgive $73.7 billion in debt. However, Trump’s campaign has previously advocated for abolishing PSLF, suggesting it could again face significant challenges.
