Student loan payments could rise dramatically in 2025: Which borrowers would be hit hardest?

Donald Trump and the Republicans are set to spike student loan debts as they officially return to power, with the 78-year-old billionaire taking over in the Oval Office. But who will be affected the most?

Lawmakers in Congress have already announced their intentions to cut federal funding, and student loan forgiveness is a key area of the agenda as they target the Biden istration's legacy.

The now former-president Biden forgave $180 billion dollars of student debt in a bid to relieve pressure on young people within the United States, with Americans owing the state around $1.6 trillion.

Republicans aim to expand the 2017 Tax Cuts and Jobs Act, which reduced corporate, individual, and estate taxes. So someone has to pay for the big breaks given to ridiculously rich companies and billionaires, and that someone is students.

Who will be targeted?

The House Budget Committee plans to axe federal spending programs to fund the five trillion dollars of tax cuts in the 2017 Act, with one particular target being the SAVE (Saving on a Valuable Education) program.

SAVE is an income-based repayment plan that lowers the amount due to be paid back as well as controlling interest rates, with a view to allowing those ed to the scheme to eventually be eligible for forgiveness.

Republicans could also scrap loan eliminations and debt forgiveness grants. This would impact those who have their schools closed whilst enrolled, or those mislead and defrauded by their educational institutions.

They also plan a cap on nonrepayable Pell Grants, which aim to low-income families and undergraduates, as well as tightening up the Public Service Loan Forgiveness (PSLF) program.

"These dangerous cuts will cause chaos across the economy," warned Mike Pierce, Student Borrower Protection Center, as per Forbes. causing monthly student loan payments to spike for millions of working families."