US ELECTION 2024
Goodbye Student Loan Forgiveness programs: What will happen to student debt if Donald Trump wins?
Based on his previous tenure and recent statements, a Trump presidency would likely spell the end of many existing student debt relief programs.
As the 2024 election approaches, the fate of student loan programs hangs in the balance, making it a crucial issue for the nearly 43 million Americans with student loan debt. The burgeoning debt crisis, nearing $2 trillion, has been discussed sparingly by the candidates on the campaign trail, despite being a key pledge of President Joe Biden’s four years ago.
That doesn’t mean it is an issue without importance. If Donald Trump returns to the White House in 2024, the landscape of student loan forgiveness could change dramatically. Trump has consistently opposed student loan forgiveness initiatives.
During his previous presidency, Trump proposed significant cuts to student aid programs and called for eliminating Public Service Loan Forgiveness (PSLF). He has been vocal in his opposition to Biden’s student loan forgiveness initiatives, referring to them as “not legal” and “vile.”
What is Public Service Loan Forgiveness?
PSLF is a federal program that forgives federal Direct Loans for borrowers working full-time in qualifying public service jobs, such as government or non-profit organizations. After making 120 qualifying monthly payments (10 years), the remaining loan balance is forgiven.
Only Direct Loans qualify, and borrowers must be on an income-driven repayment plan or the Standard 10-year Repayment plan.
Under his leadership, 99% of applicants were denied Public Service Loan Forgiveness, and changes to the Borrower Defense to Repayment program significantly limited loan forgiveness for students misled by their schools, a move that was overturned during President Joe Biden’s presidency.
Trump celebrated the Supreme Court’s decision to overturn Biden’s broader relief plan, which would have forgiven up to $20,000 in debt for some borrowers. His campaign praised this as a “massive win for the American people,” crediting the decision to his Supreme Court nominations.
Looking ahead, if re-elected, Trump would likely work to repeal or restrict student loan forgiveness programs enacted by the Biden administration. His policies might include simplifying income-driven repayment plans, potentially increasing monthly payments for many borrowers, and possibly eliminating loan forgiveness options after extended repayment periods.