Experts warn that this student loan relief could face the greatest threat under the Trump administration.

• Uncertainty surrounds several student loan programs with President Donald Trump's return to the White House and the Republican control of Congress.
• Trump is a vocal critic of education debt forgiveness policies.
• The Public Service Loan Forgiveness program and a popular tax break for borrowers are being considered for elimination by House Budget Committee Republicans.

Experts are concerned that student loan programs may be at risk with President Donald Trump back in the White House and Republicans in control of Congress.

The Saving on a Valuable Education, or SAVE, plan and the Biden administration's more lenient bankruptcy policy are among the at-risk programs.

The House Budget Committee Republicans are considering cutting or eliminating more student loan programs, including the Biden administration's rules that simplified the process for borrowers to receive debt relief when they were defrauded by their schools, according to Politico's report from last week.

Trump's comments about student loan relief on the campaign trail have caused concern among consumer advocates, who fear that borrowers may be negatively impacted by his views. At one rally, he labeled the Biden administration's debt forgiveness efforts as "vile" and "not even legal."

The White House did not immediately respond to a request for comment.

According to higher education expert Mark Kantrowitz, over 40 million Americans have federal student loans, with a total outstanding debt of $1.6 trillion.

The Trump administration is perceived to pose the greatest threat to these expert-identified programs.

SAVE plan

In 2023, the Biden administration announced its new student loan repayment plan as "the most affordable plan ever." SAVE reduced many borrowers' monthly payments by half and shortened the path to loan forgiveness for those with smaller balances.

The new income-driven repayment (IDR) plan quickly gained popularity, with around 8 million borrowers signing up within a short period, as announced by the White House.

But the plan also quickly ran into legal troubles.

The legal challenges led by Republican attorneys general in Kansas and Missouri against SAVE, who argued that President Biden was attempting to circumvent the Supreme Court's decision on student debt cancellation, have kept the plan on hold since last year.

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The plan is unlikely to survive a second Trump term, Kantrowitz said.

"The Trump administration could abandon the defense of the SAVE repayment plan in the pending lawsuits, according to him."

Kantrowitz suggested that Congress could pass a law to eliminate the repayment plan.

Experts predict that the reprieve for currently enrolled SAVE participants from making payments may soon come to an end as the plan remains tied up in court.

Bankruptcy protections

For decades, it was nearly impossible for student loan borrowers to discharge their federal debt through bankruptcy. However, the Biden administration has made it easier for borrowers to seek relief.

In the fall of 2022, the Department of Education and the Department of Justice released updated bankruptcy guidelines to simplify the bankruptcy process for student loan borrowers. According to experts, the Biden administration's updated policy treats student loans as other types of debt in bankruptcy court.

Trump is likely to rescind that guidance, Kantrowitz said.

He stated that there might be a more aggressive stance in opposing all efforts to discharge federal student loans in bankruptcy.

A consumer bankruptcy attorney in Virginia expressed optimism that the guidance would continue.

We may observe a change in approach among assistant U.S. attorneys due to the new hires in many jurisdictions and the influence of changing politics and Republican-aligned attorneys.

She stated that she was adopting a more cautious approach when accepting student loan bankruptcy cases.

Other student loan aid at risk

The House Budget Committee Republicans have proposed repealing part of the Biden administration's Borrower Defense regulations, which allowed borrowers to have their debt forgiven if their school engaged in wrongdoing.

Politico obtained a document revealing that GOP members are considering limiting eligibility for the Public Service Loan Forgiveness program as they review reforms to the program.

Nearly 13 million taxpayers utilized the student loan interest deduction before the Covid pandemic, which allows qualifying borrowers to deduct up to $2,500 a year in interest paid on eligible private or federal education debt.