With Donald Trump set to return to the White House in January 2025, the future of federal student loan forgiveness programs and borrower protections is likely to undergo some changes, potentially impacting millions of Americans carrying student debt. During his previous term, Trump took a notably hardline stance on student loan forgiveness, and many of President Biden’s borrower-friendly initiatives are now at risk.
Broad student loan forgiveness unlikely under Trump
While President Biden’s administration worked toward forgiving billions in federal student debt, Trump’s campaign has consistently expressed opposition to such measures, calling them “vile” and celebrating the Supreme Court’s decision to block Biden’s broad debt relief plan earlier this year. Trump has criticized loan forgiveness initiatives as overly generous and potentially harmful to taxpayers. Under his leadership, broad cancellation initiatives, such as Biden’s Plan B proposal, are expected to face resistance, and Trump could direct the Education Department to withdraw the policy entirely, leaving it in legal limbo or actively dismantling it.
SAVE and other Income-Driven Repayment Plans at risk
The Saving on a Valuable Education (SAVE) plan, which Biden designed as a more affordable repayment option, faces an uncertain future. SAVE and other income-driven repayment (IDR) plans allow borrowers to pay a percentage of their income with the possibility of debt forgiveness after 20 to 25 years. Trump has previously advocated for restructuring these plans to limit forgiveness, and Project 2025, a conservative initiative guiding his administration, promotes replacing multiple repayment options with a single, less forgiving plan. Under this proposal, monthly payments would increase for many borrowers, and the forgiveness timeline could be eliminated, placing added strain on long-term borrowers.
“While income-driven repayment (IDR) of student loans is a superior approach relative to fixed payment plans, the number of IDR plans has proliferated beyond reason,” the document says. “And recent IDR plans are so generous that they require no or only token repayment from many students.”
Public Service Loan Forgiveness program may be dismantled
The Public Service Loan Forgiveness (PSLF) program, which cancels debt for individuals in public service roles after a decade of qualifying payments, could also be on the chopping block. Trump previously sought to reduce the program’s reach, and reports from 2019 showed high rejection rates for applicants. Project 2025 advocates for eliminating PSLF; “The Public Service Loan Forgiveness program, which prioritizes government and public sector work over private sector employment, should be terminated.” Ending PSLF, however, would require legislative changes, so while Trump could propose an end to the program, he would need support from Congress to pass such measures.
Borrower protections likely to weaken
Borrower defense to repayment, a policy that discharges debt for students misled by their educational institutions, is another area Trump might target. During his earlier administration, he tightened restrictions on these protections, making it harder for defrauded students to qualify for relief. Under Biden, the rule was reversed to allow more students to benefit. However, Trump’s team has indicated that, if elected, they plan to restrict borrower defense to cases with clear, documented evidence of fraud, limiting access to relief for many borrowers.
Limited prospects for Pell Grant increases
The Pell Grant program, which aids low-income students with college expenses, received a substantial boost during Biden’s administration, increasing the maximum award by $900. Trump’s policies on educational funding, however, are unlikely to support further increases. Project 2025 recommends maintaining the current grant levels without additional expansions, potentially impacting future access to federal aid for low-income students.
