Education
Goodbye to Biden's student loan relief? Here's what to expect with Donald Trump in office
Student loan relief was one of the flagship programs of President Joe Biden, but it’s not a priority for the incoming Donald Trump administration.
Student loan forgiveness was among the top priorities of President Joe Biden during his term, with several programs to erase debt and lessen repayments for other borrowers.
However, those who continue to be saddled with student loans may not see relief when President-elect Donald Trump returns to the Oval Office.
Goodbye to Biden’s student loan relief? Here’s what to expect with Donald Trump in office
Trump has disparaged Biden’s student debt relief programs, describing them as “a total catastrophe.” It thus seems unlikely his government will continue the outgoing administration’s efforts to fight lawsuits involving its attempts to forgive student debt.
Republican-led states are currently challenging two student loan relief plans in court: the Saving on a Valuable Education, or SAVE plan; and a program to use the Higher Education Act to forgive all or a portion of student debt held by over 30 million borrowers. Trump said this proposal tried to “unlawfully mass cancel up to hundreds of billions of dollars in student loans.”
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Trump’s second term could spell the end of these two plans, personal finance company NerdWallet told CBS News. The Education Department has stated its commitment to defending both programs, but then Trump has said he plans to abolish this department.
“Programs that the Biden administration created or expanded access to via regulatory changes could be easily rolled back,” said NerdWallet lending expert Kate Wood.
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Meanwhile, according to Bob Eitel, a counselor to the education secretary during Trump’s first term, the Republican will likely revoke Biden’s loan relief regulations, per CBS.
“The Trump administration may pursue different avenues of loan relief, but it will not be the mass, blanket types of forgiveness that the current administration has pursued,” said Eitel.
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