As Donald Trump prepares to assume the presidency, significant shifts in student loan policies could be on the horizon. During Joe Biden‘s term, his administration made historic strides in reducing student loan debt, but many of those initiatives now face an uncertain future.
President Joe Biden‘s administration delivered $183.6 billion in student loan forgiveness to over 5 million borrowers, the largest amount forgiven by any U.S. administration.
While the Supreme Court struck down his initial plan to forgive up to $20,000 per borrower, Biden pivoted with alternative measures that provided relief to millions.
“Four years ago, President Biden made a promise to fix a broken student loan system. Today, life-changing student debt relief is possible for more than five million borrowers-more than any other administration in history,” said U.S. Secretary of Education Miguel Cardona.
In one of his final actions as president, Biden enabled 150,000 additional borrowers to receive loan forgiveness. These included nearly 85,000 borrowers defrauded by their schools, 61,000 borrowers with permanent disabilities, and 6,100 public service workers.
“My Administration has taken historic action to reduce the burden of student debt, hold bad actors accountable, and fight on behalf of students across the country. I’m proud to say we have forgiven more student loan debt than any other administration in history,” Biden said.
The potential Trump impact
With Trump returning to the White House, many of Biden‘s policies, including those on student loan forgiveness, could be dismantled. Trump has criticized Biden‘s student loan plans, referring to them as a “total catastrophe” during a September 2024 debate.
One of Trump‘s spending reform proposals includes cutting Biden‘s student loan initiatives by $200 to $330 billion. Biden‘s original proposal to cancel up to $20,000 in student loan debt was projected to cost $400 billion, according to the Congressional Budget Office. A Trump-era rollback could drastically reduce the number of borrowers eligible for relief.
As Trump‘s administration prepares to take office on January 20, the Republican-controlled Congress will likely play a significant role in shaping the future of student loan policy. With GOP leadership in both the House and Senate, legislative changes to federal student loan programs could occur swiftly.
Borrowers could face a vastly different landscape in 2025. As repayment protections end, those who default may experience credit score impacts, and the SAVE plan’s legal outcome will affect millions.