Savannah Britt is grappling with approximately $27,000 in student loans from her time at Rutgers University, and she was optimistic about potential relief through President Joe Biden’s student loan forgiveness initiatives. Currently, her repayments are paused as legal challenges to the loan forgiveness program continue to unfold. However, with Biden’s administration nearing its end, she may soon be confronted with monthly payments reaching up to $250.
“I feel like the dream is over with this new administration,” expressed Britt, 30, who has established her own communications agency. “I was feeling hopeful prior to Tuesday and was patiently waiting for the process to move forward. My mother also took out a loan to support my education, accumulating about $18,000, and she was on track to have it forgiven, but now that’s also stalled.”
Britt’s plight follows the critiques directed at Biden’s loan forgiveness efforts by President-elect Donald Trump and other Republicans, leading to legal blockages by states governed by GOP leadership that have left many borrowers in limbo. Trump has been vague about his plans for handling student loan forgiveness, which has resulted in further economic uncertainty for countless individuals carrying student debt.
The economy emerged as a pivotal focus in the election, significantly contributing to Trump’s success. For borrowers, financial concerns are not limited solely to inflation but also encompass the heavy burden of student loans, according to Persis Yu from the Student Borrower Protection Center. “This financial strain is a primary factor in making life unaffordable for many individuals who feel trapped by their expenses,” Yu commented.
Throughout the campaign, neither Trump nor Vice President Kamala Harris prioritized discussions about student loan cancellation. It was only briefly addressed during one of the presidential debates, where Trump criticized both Harris and Biden for failing to meet their commitments regarding widespread loan forgiveness, labeling the situation a “total catastrophe” that plays with the hopes of young adults.
While Biden campaigned on the promise of student loan cancellation, his proposals faced significant backlash from detractors who argued that such measures would disproportionately benefit the more affluent at the expense of those who had either repaid their loans or opted not to pursue higher education. The Supreme Court blocked Biden’s initial attempt to cancel up to $20,000 for millions of borrowers last year. A subsequent, more restrictive plan has faced a blockade from a federal judge due to lawsuits launched by Republican-led states. Additionally, another policy designed to alleviate monthly payments for struggling borrowers is also on hold because of similar legal challenges.
In terms of public reception, Biden’s approach to handling student debt has not been particularly well-received; a recent poll indicated that only 30% of U.S. adults expressed approval of his management of student loans, while 40% disapproved, with the remainder uncertain or neutral.
Project 2025 outlines a vision for a significant conservative shift in American governance, which aligns with several of Trump’s priorities. This plan advocates for the elimination of the federal government’s role in student loans and dismantling pre-Biden administration repayment plans.
Despite not directly addressing student loans, Trump has made commitments that would impact borrowers’ situations, including the elimination of the U.S. Department of Education, which is responsible for managing the federal student loan portfolio, totaling $1.6 trillion. The future of such responsibilities remains uncertain in the event of the department’s dismantling, which would necessitate Congressional approval.
Yu highlighted that the Biden administration has successfully canceled student loans for around 5 million borrowers through existing programs despite the hurdles faced by the signature forgiveness initiative. For instance, an existing loan forgiveness program for public service workers has benefited more than 1 million individuals—an increase from merely 7,000 approvals prior to enhancements made by the current administration.
“A significant amount of the loan cancellation seen over the past couple of years can be attributed to the Biden administration’s dedication to effectively implementing legally established programs,” Yu noted.
Sabrina Calazans, 27, holds roughly $30,000 in federal student debt from her education at Arcadia University in Pennsylvania. Her payments are also on pause, but she anticipates resuming with a monthly bill that could exceed $300. “As a first-generation American living at home, contributing to my family’s financial obligations, that payment presents a significant burden for me and many others,” Calazans said, sharing her background as an immigrant from Brazil.
In her position as the managing director at the Student Debt Crisis Center, Calazans advises individuals to stay informed about recent developments regarding student loans by utilizing resources such as the loan simulator available on the Federal Student Aid website, alongside updates on repayment and forgiveness criteria. “There is a great deal of confusion surrounding student loans, not only among younger individuals,” observed Calazans, pointing to a noticeable trend of parents accruing additional debt to fund their children’s education while older adults go back to school and find themselves needing loans as well.