The 2024 presidential election has ended, and Donald Trump is poised to retake the White House, with big implications for student loan forgiveness and repayment programs that would impact millions of borrowers.
Vice President Kamala Harris ran on the Biden administration’s student debt relief victories, which have collectively resulted in more than five million borrowers receiving student loan forgiveness — even as several initiatives remain tied up in court. Trump, meanwhile, had repeatedly blasted the Biden administration’s efforts to wipe out student debt.
Here’s what the election results may mean for student loan borrowers and what to expect in the coming months.
Mass Student Loan Forgiveness Programs Are Likely Dead
While the concept of mass student loan forgiveness has gained enormous traction during the last decade, the issue has become extremely polarized. Republican lawmakers, and even some conservative-leaning Democrats, have come out strongly against all attempts to enact widespread debt cancellation. With Trump now declared the winner of the 2024 election, mass student loan forgiveness is likely dead.
Last summer, the Supreme Court nixed President Joe Biden’s initial attempt at broad student loan forgiveness. In a 6-to-3 ruling, the Court’s conservative majority held that wiping out $10,000 in federal student loan debt for most borrowers was not authorized under the federal statute the administration had relied on.
Biden administration officials forged ahead with a “Plan B” for mass loan forgiveness. The first component would have provided broad relief to four categories of borrowers, including those who first entered repayment decades ago, and people whose loan balances have exploded due to interest. That program was halted by a federal court last month following a legal challenge.
Meanwhile, the administration moved forward with a second component of that loan forgiveness plan, and released proposed regulations in October that would provide several pathways to relief for borrowers experiencing hardship. The Education Department had anticipated implementing that aspect of the program sometime in 2025.
The Impact On Borrowers
For many borrowers, these relief programs represent a lifeline amid rising living costs and economic uncertainty. Individuals like Savannah Britt, who accumulated significant debt for her education, express a mix of hope and frustration as they navigate the shifting landscape of student loan forgiveness. The uncertainty surrounding future payments weighs heavily on those who were counting on relief from their financial burdens.
Sabrina Calazans, another borrower facing potential repayment obligations, emphasizes the importance of staying informed about available options. She advises fellow borrowers to utilize resources such as the Federal Student Aid website’s loan simulator to explore their repayment options and potential eligibility for forgiveness programs.
