Millions of Americans holding student loan debt may need to brace for tough times as Donald Trump’s upcoming presidency threatens to halt ongoing forgiveness programs. Pilar Yu from the Student Borrower Protection Center put it bluntly: “With this new administration, the dream is gone. It’s shot.”
Trump’s expected approach to student debt is already causing waves of concern, with borrowers wondering if relief efforts under Biden will come to an abrupt end.
After aggressively championing student loan forgiveness, the Biden administration achieved historic progress, canceling or reducing debt for nearly 5 million people through existing relief programs.
Programs like Public Service Loan Forgiveness (PSLF) were revamped, delivering debt relief to over 1 million public sector employees. However, experts predict Trump will instruct his administration to abandon defending Biden’s debt relief efforts in court, where many are already entangled in legal battles.
Donald Trump’s radical stance
Trump has repeatedly voiced his opposition to student debt forgiveness, calling Biden’s initiatives “vile” and “illegal.” At a campaign rally in Wisconsin, he celebrated the Supreme Court’s 2023 block on Biden’s original loan cancellation plan.
This new administration, backed by influential Republicans, could work to eliminate the PSLF program and other affordable repayment options altogether. Such moves may also jeopardize protections for those defrauded by for-profit schools, an area where Trump’s policies have previously drawn criticism.
While many borrowers worry about an uncertain future, others support Trump’s stance. A national poll from the University of Chicago found that only 15% of Republicans support loan forgiveness, compared to 58% of Democrats.
A working class problem
Conservative figures, such as Vice President-elect JD Vance, argue debt cancellation disproportionately benefits the wealthy. Yet consumer advocates contend it’s a critical working-class issue, pointing to rising education costs that force many to borrow just to achieve a middle-class lifestyle.
If Trump follows through on his promise to dismantle the U.S. Department of Education, the $1.6 trillion federal student loan portfolio may face an uncertain future.
For now, borrowers face the possibility of halted forgiveness efforts and the burden of repayment resuming-a stark shift from Biden’s vision of a debt-relief lifeline for millions.