With Donald Trump in office, many borrowers are wondering whether the record amount of student loan forgiveness granted under President Joe Biden could be rolled back.
Trump has been a vocal critic of student loan forgiveness, and his administration is widely expected to halt efforts to cancel student debt. However, experts say borrowers who have already had their loans forgiven are in the clear.
Can Trump reverse forgiven student loans?
Over the past four years, the Biden administration has forgiven nearly $175 billion in federal student debt, benefiting five million borrowers, according to the White House. Much of this relief came from fixing and expanding existing programs, such as Public Service Loan Forgiveness (PSLF), Income-driven repayment (IDR) plans and borrower defense and disability discharge programs.
However, borrowers have expressed fears that Trump‘s administration could reinstate their forgiven debt.
Higher education expert Mark Kantrowitz told CNBC he has received numerous emails from concerned borrowers asking whether the new administration could “claw back” their loan forgiveness.
The good news is that experts say this isn’t legally possible.
According to Betsy Mayotte, president of the Institute of Student Loan Advisors, the Department of Education cannot retroactively change loan terms.
“Any regulatory changes must be prospective only,” Mayotte explained.
This means that any attempts to eliminate loan forgiveness programs would only impact future borrowers-not those who have already had their debts discharged.
Even those still working toward forgiveness under PSLF or IDR plans should be safe, as the terms of their loans are protected by the master promissory note they signed when they took out the debt.
Furthermore, legal precedent supports the finality of loan forgiveness. In June 2024, a ruling by U.S. District Judge Daniel Crabtree described student loan forgiveness as having an “irreversible impact”, reinforcing that once relief is granted, it cannot be undone.
While student loan forgiveness cannot be revoked for political reasons, there are rare instances where debt can be reinstated-usually due to errors by loan servicers.
For example, in February 2024, some borrowers saw their Public Service Loan Forgiveness canceled in error and later had their balances reinstated.
The Consumer Financial Protection Bureau (CFPB) has reported “balance reinstatement” issues, where loan servicers mistakenly add a $0 balance loan back onto a borrower’s account.