Savannah Britt, a Rutgers University alumna, carries approximately $27,000 in student debt. Like millions of other borrowers, Britt had hoped President Joe Biden’s student loan forgiveness plan would alleviate her financial burden. However, legal challenges and a shift in the White House administration now leave her uncertain about her financial future.
A pause in payments amid legal battles
Britt is currently waiting for a final decision on the Loan forgiveness program announced by Biden, which has been contested by several states led by Republicans. Payments for borrowers like her have been suspended for a while, however, that suspension is nearing an end with another $250 debt payment ready to be ready any month if this program does not go forward.
“With this new administration, the dream is gone. It’s shot,” declared Britt, 30, who runs a communications business of her own. She went on to say that while she was “optimistic” just before Tuesday, a major turn in politics changed her views on debt relief. To compound her distress, her mother $18,000 loan which was taken for Britt’s schooling is still stuck owing to the loan forgiveness program that’s under suspension.
Trump administration’s silence on loan forgiveness
The uncertainty surrounding the student loan forgiveness program grew after Donald Trump was elected president. Trump and his fellow Republicans have criticized Biden’s approach to loan forgiveness, yet Trump has not offered a concrete stance on how he would address this issue. This silence from the incoming administration has created a climate of anxiety for borrowers, who now face the prospect of resuming payments without the assistance they anticipated.
In addition to Trump’s silence, lawsuits filed by Republican-led states have also blocked Biden’s loan forgiveness efforts from moving forward. These legal challenges argue that the program, which sought to cancel student debt for millions of Americans, exceeds the president’s authority, and courts have sided with opponents, further delaying relief for borrowers.
Personal and financial struggles for borrowers
Finances are bound to get worse again for borrowers such as Britt, particularly because there is no forgiveness for her outstanding loans. Since Britt’s monthly payments, which are temporarily suspended, are most likely to be a huge burden on her finances, especially as she runs a business, it is easy to understand why her issues will be complicated. “I was waiting out the process,” was how she referred to her expectations. Over time most of them have adapted to the situation but it was getting very hard to be still about the loan forgiveness program.
Britt’s financial worries go deeper than these, as Persis Yu, Managing Counsel of the Student Borrower Protection Center, has explained. “There are concerns of inflation and the economy, but for borrowers, what they owe in student debt is at the forefront,” stated Yu. As Yu explained, Economic themes were critical during these elections and even helped Trump win these elections, but borrowers were left pondering how this new regime would treat their debts concerning education.
Impact of economic priorities on debt relief
For borrowers like Britt and her mother, who together owe $45,000, the future is more and more bleak. With the loan forgiveness program frozen, both are left to wonder what’s next as the new president takes office. Trump’s vague stance on student loans leaves millions in great concern whether they should prepare for a financial bailout or brace for the inevitable restart of the payments with no helpful measures in place.
While the issue of loan forgiveness is hotly contested in court and political front, borrowers are getting ready for a situation without the expected relief. The case is different with Britt, whose belief in the possibility of loan forgiveness has long changed and given way to its new focus: getting ready for the monthly installments and dealing with the consequences of the student’s debt.
Looking ahead amid uncertainty
Individuals like Britt and her mother, who carry a combined $45,000 of debt, are starting to worry about the future. The pause on the loan forgiveness program leaves them to wonder what steps to take next as the new president-elect gets into office. Such uncertainty prevails among many who owe student debts and are waiting on the new president to unveil policies on student debt as Trump has not made any categorical statements on the issue.
With continued court and political opposition to the loan forgiveness policy, borrowers are strategizing for the worst-case scenario stricken with the non-existence of such relief. As for Britt, she was enthusiastic about the prospect of student loan forgiveness but this has now metamorphosed into a new objective: preparing to make monthly payments and managing the effects of her debt.
