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As the 2024 presidential election approaches, student loan borrowers are left wondering what policies could emerge depending on who takes office.
With approximately 43 million Americans grappling with student debt, the issue remains critical, especially as the national student loan debt has ballooned to nearly $2 trillion.
Trump opposes student loan forgiveness
Current surveys indicate that a significant portion of the population, especially borrowers and Democrats, view federal student debt relief as a vital issue.
Approximately 40% of adults believe it is extremely or very important for the government to provide this relief.
However, under a Trump istration, the landscape of student loan forgiveness could shift dramatically.
Donald Trump has been a staunch opponent of student loan forgiveness initiatives.
During his previous presidency, he proposed substantial cuts to student aid programs, including the elimination of the Public Service Loan Forgiveness (PSLF) program.
He has consistently criticized President Biden's debt relief measures, describing them as "not legal" and "vile."
His istration's approach resulted in a staggering 99% denial rate for PSLF applicants, limiting options for borrowers seeking forgiveness.
The ramifications of Trump's election win could nullify current student loan policies and further restrict forgiveness programs.
His endorsement of the Supreme Court's decision to block Biden's debt relief plan highlights his opposition to broad-based forgiveness efforts. Trump celebrated this ruling as a "massive win for the American people," linking it to his judicial nominations that have shaped the court's stance on such matters.
Student loan borrowers could face challenges
Trump's istration had also significantly weakened the Borrower Defense to Repayment rule, which was designed to forgive loans for students misled by educational institutions.
While the Biden istration has since expanded forgiveness under this regulation, Trump's potential return to power could result in a reversion to stricter criteria, making it even more challenging for deceived borrowers to obtain relief.
Despite his opposition to broad forgiveness, Trump has expressed for income-driven repayment plans, which adjust monthly payments based on borrowers' income and allow for eventual loan forgiveness.
However, his previous proposals would have complicated the landscape for many borrowers by potentially increasing payments for undergraduate loans and extending the repayment period for graduate loans.
Furthermore, during his presidency, Trump temporarily paused federal student loan payments and waived interest to assist borrowers amid the pandemic.
This relief was extended multiple times, including after Biden took office, but it remains unclear whether similar measures would be reinstated under a Trump istration.
As the election nears, the future of student loan policies remains a crucial issue for voters to consider.