WASHINGTON — President Joe Biden has decided to abandon plans to cancel student loans for over 38 million Americans as part of a broader strategy to withdraw pending regulations. This move occurs in anticipation of President-elect Donald Trump potentially modifying these regulations to align with his own objectives once he assumes office.
The Biden administration aims to retract numerous unfinished rules from various agencies as time runs short before Trump’s inauguration. If the proposed regulations remain active, the incoming administration will have the opportunity to alter them significantly, allowing for a quicker implementation of its policy agenda.
Despite the withdrawal of student loan proposals, the administration continues to make progress on loan cancellations through alternative means. Recently, the Education Department has cleared loans for an additional 55,000 borrowers who qualify under the Public Service Loan Forgiveness program, established by Congress in 2007 and later expanded by Biden’s administration.
While the Biden administration moves to rescind these regulatory proposals, nothing would prevent Trump from initiating his own regulations regarding these issues. However, he would face the challenge of starting the process anew, which could take months or even years.
“This isn’t how I wanted this to end,” remarked activist Melissa Byrne, who has been an advocate for student loan cancellation. She expressed frustration at the situation, indicating that Republicans are largely to blame for the current predicament. “It’s unfortunate that we have a GOP dedicated to keeping working-class Americans in debt,” Byrne stated.
In the documents announcing the withdrawal of the student loan initiatives, the Education Department emphasized that it possesses the authority to cancel the debt. However, it has opted to prioritize other issues in the final weeks of the administration. The agency plans to focus on assisting borrowers in resuming regular payments after the pandemic-related pause on payments.
“At this time, the department intends to allocate its limited operational resources towards helping vulnerable borrowers return to repayment successfully,” the Education Department indicated.
These regulatory withdrawals come amidst conditional fears of a potential government shutdown, which may further hinder the Biden administration’s efforts to finalize its agenda. Another pending regulation that could also be withdrawn is a proposal aimed at preventing schools from imposing blanket bans on transgender athletes. Trump has pledged to modify Title IX regulations to restrict transgender athletes from participating in girls’ sports.
A source within the administration, who chose to remain anonymous to discuss internal matters, stated that the administration still believes in the objectives of its initial regulatory proposals. However, implementing such proposals often requires extensive legal reviews and public input, which can be time-consuming.
Federal agencies are currently evaluating which regulations to complete or withdraw before Biden’s term concludes. In recent times, presidents have increasingly relied on executive orders and federal regulations to navigate legislative gridlock. Yet, the rulemaking process is often less stable than congressional legislation, making policies more susceptible to changes when administrations shift.
There are numerous pending regulations across the Education Department and other federal agencies, varying from minor updates to significant policies that could have profound effects on the country’s educational system and businesses. If a regulation has already undergone public feedback under Biden, Trump could potentially replace it immediately with his own proposal, skipping the public comment phase entirely.
The student loan proposals expected to be withdrawn mark Biden’s second attempt at substantial debt cancellation following a Supreme Court ruling that blocked his initial plan. One proposal from April aimed to offer targeted debt relief to approximately 30 million Americans, outlining specific categories of borrowers eligible for relief. Those whose loans had significantly increased due to accruing interest would have been relieved of that debt, while borrowers with over 20 years of repayment would have seen their loans eliminated.
However, this plan faced legal hurdles after a federal judge in September blocked it due to lawsuits by Republican-led states, resulting in an ongoing legal struggle. The other rule slated for withdrawal was proposed in October and intended to authorize the Education Department to cancel loans for individuals facing financial hardships, such as overwhelming medical expenses or childcare costs.
Although Biden has not realized the extensive loan cancellations he initially promised, his administration has overseen the forgiveness of an impressive $180 billion in federal student loans through existing programs.
“Thanks to our actions, millions across the nation are now able to pursue their ambitions, save for retirement, and embark on plans that were previously hindered by student loan debt burdens,” Biden remarked in a recent statement.
On Friday, officials revealed that debt was being erased for an additional 55,000 workers, including essential personnel such as teachers, nurses, and law enforcement, benefiting from the Public Service Loan Forgiveness program, which offers loan forgiveness to borrowers with ten years of service in government or nonprofit roles. This $4.28 billion relief is anticipated to be the final round before Biden exits office in January.
Biden’s proposed rule regarding transgender athletes, initially introduced in 2023, faced multiple delays. It aimed to extend civil rights protections to LGBTQ+ students under Title IX and would have prevented outright bans on transgender athletes while allowing some restrictions based on competition fairness or injury prevention.
This proposal remained inactive during the presidential campaign as the issue sparked considerable outrage from Republicans. Trump has made creating a ban on transgender athletes a significant point in his campaign, pledging to “keep men out of women’s sports.”