*As Donald Trump prepares for a potential return to the presidency in 2025, many Americans are concerned about the future of student loan policies.
During Joe Biden’s administration, around $180 billion in student loan debt was forgiven, benefiting nearly 5 million borrowers, and income-driven repayment plans significantly reduced monthly payments for millions. However, as Newsweek reports, Trump has historically opposed widespread loan forgiveness, labeling it “unfair” and criticizing Biden’s plans as a “catastrophe.”
If Trump takes office, his administration may reintroduce proposals to increase repayment percentages and consolidate income-driven repayment plans. Biden’s SAVE plan, which cut payments for millions and prevented interest accrual, is unlikely to remain under a Trump administration. Despite this, other repayment options, such as the Public Service Loan Forgiveness program, are expected to continue through 2027.
“Borrowers shouldn’t expect much relief under Trump. He has never been a proponent of widespread debt forgiveness, and history suggests he sees personal responsibility as the foundation of financial obligations” Kevin Thompson, the founder and CEO of 9i Capital Group, told Newsweek.
“Trump University’s $25 million settlement serves as a reminder that he doesn’t part with money easily, and many believe he carries a vendetta against anything that resembles a government bailout for individuals,” Thompson added.
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Michael Lux, an attorney and founder of Student Loan Sherpa, told Newsweek: “Thus far, we haven’t gotten much from the incoming Trump administration in terms of what borrowers should expect for the next four years. That said, whenever there are changes to student loan policy or a new administration, it is always a good idea to revisit your student loan repayment strategy. Are you on the best repayment plan for your circumstances? Are you making progress toward loan forgiveness or repayment in full?”
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, added; “For student loan borrowers past and present, the future seems to be quite clear: Get ready to pay back the loans you have and lessen any expectations of forgiveness or relief programs being upheld by the incoming administration.”
“President Trump signaled opposition to these programs on the campaign trail, so the likelihood of them suddenly gaining support seems virtually nonexistent. If you haven’t been treating your student debt seriously in the hope of future forgiveness, now is the time to start tackling it by making payments,” Beene said.
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