If Trump is reelected for a second term, he may abolish student loan forgiveness initiatives.

• Trump, as president, advocated for the abolition of the Education Department's debt relief programs, including the widely used Public Service Loan Forgiveness program, which assists public sector workers such as members of the U.S. military, first responders, public defenders, prosecutors, and educators.
• Additionally, he aimed to reduce the department's budget and stopped a regulation that would have offered loan forgiveness to those deceived by their schools.
• Trump, while running for president again, appears set to make deeper cuts to financial aid programs for students.

At a June 18 rally in Racine, Wisconsin, former President Trump criticized the Biden administration's student debt forgiveness plan as "immoral" and "illegal."

Trump remarked to a crowd of around two thousand people near Lake Michigan, "The students aren't accepting it."

Trump also mentioned the Supreme Court's decision in 2023 to block President Biden's first attempt at broad student loan cancellation, stating that he faced criticism but persisted.

Trump stated, "It will face even more criticism."

Trump, as president, advocated for the abolition of the U.S. Department of Education's current loan relief programs, including the Public Service Loan Forgiveness initiative, which benefits public employees such as members of the U.S. Armed Forces, first responders, public defenders, prosecutors, and teachers. He also proposed to drastically reduce the department's budget and halted a regulation aimed at granting loan forgiveness to those defrauded by their schools.

Trump, while running for president again, appears set to make deeper cuts to financial aid programs for students. He has frequently criticized Biden's loan relief policies and stated in a campaign video in late 2023 that he intends to shut down the Education Department entirely.

The Congressional Research Service reported in 2022 that the outstanding education debt in the U.S. surpassed $1.6 trillion. Approximately 43 million people, or 1 in 6 adult Americans, hold student loans, according to the report.

The Heritage Foundation, in collaboration with over 100 conservative organizations, has developed Project 2025, which recommends that student loans and grants be returned to the private sector. Some conservatives believe that private companies would be more effective in lending to students than the federal government. Additionally, the proposal suggests reducing affordable repayment options for borrowers and ending loan forgiveness after a specified timeframe.

"Mark Kantrowitz, a higher education expert, stated that Trump will reverse President Biden's student loan forgiveness plans and loosen regulations on for-profit colleges as part of his deregulation initiatives. He also predicted that Trump may propose cuts, including the possibility of defunding the U.S. Department of Education."

In an email response, Steven Cheung, a spokesman for the Trump campaign, directed CNBC to resources, including Trump's campaign website and various media articles, where sources portrayed student loan forgiveness as a benefit for high earners and those who attended prestigious universities. According to an estimate by Kantrowitz, less than 1% of federal student borrowers attended Ivy League colleges.

Cheung declined to provide specific details on Trump's plans for addressing student debt and education if he becomes president, as asked by CNBC.

Efforts against student loan relief already in play

Biden's student loan relief efforts have been hindered by Trump's party members, particularly through lawsuits filed by Republican-led states such as Florida, Arkansas, and Missouri, which halted the implementation of key parts of his new repayment plan, resulting in reduced monthly payments for many borrowers.

The Biden administration was unable to forgive more debt under the Saving on a Valuable Education, or SAVE, plan and reduce enrolled borrowers' payments in July due to preliminary injunctions. However, on Sunday, a federal appeals court granted the Education Department's request to stay one of those injunctions, allowing the department to proceed with lowering loan bills for SAVE enrollees.

If Trump wins, Cody Gude, a social media consultant in Tampa, Florida, predicts that paying back his student loan debt of approximately $34,000 will become more challenging and expensive.

Gude, 35, stated that with inflation and student loans resuming, it has become quite challenging.

Florida's decision to join the lawsuit against the SAVE plan upset Gude, who was eagerly anticipating a decrease in his student loan bill in July, which would allow him to stop delivering groceries through Instacart in addition to his regular job.

Gude expressed pain that his home state is unwilling to assist its own residents.

He expressed concern that if Trump were elected, he might rescind financial aid options for young people, and therefore, he intends to vote for Biden.

Bringing 'free market forces' to student lending

Some voters support Trump's stance on student loan relief but believe that loan forgiveness for those who have benefited from higher education is unfair.

A national poll conducted by the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research found that only 15% of Republicans consider student loan forgiveness important, compared to 58% of Democrats.

Over 148,000 individuals responded to the Biden administration's latest student loan forgiveness proposal.

One person wrote: "I urge the Biden administration to cease placing an unjust burden on Americans who did not attend college or have repaid their student loan debt."

I pursued a graduate degree while working overtime and three part-time jobs.

"The second person stated that college is a personal decision that requires adult decisions, and it is not the federal government's responsibility to pass those personal decisions onto taxpayers."

Elaine Parker, president of the Job Creators Network Foundation, a conservative advocacy group, stated that Biden's student debt forgiveness was solely aimed at winning votes.

Parker stated that the root cause of the student loan crisis, according to her, was the increase in college tuition.

Congress should conduct legislative hearings and invite campus leaders to explain their tuition increases, high administrative expenses, and unclear degree programs regarding career outcomes, as stated by Parker.

She added that the private sector should have a greater part in funding higher education.

"What is the reason for removing banks from this system?" Parker inquired. "The college lending system has lost free market forces."

Concerns about Trump's proposals

Conservatives and Trump's proposed higher education reforms sparked worry among experts and advocates.

If the U.S. Department of Education were shut down, "there would be complete chaos," Kantrowitz said.

The elimination of Pell Grants, federal student loans, and work study opportunities would mean an end to one of the largest sources of financial aid for college students, according to him.

"K-12 education would be in disarray, too," Kantrowitz added.

Aissa Canchola-Banez, political director at Protect Borrowers Action, stated that transferring student lending from the government to private companies would only harm consumers and worsen the crisis.

Canchola-Banez stated that prioritizing profits over borrowers' needs leads to catastrophic outcomes for private lenders.

Kelly Lambers, a Cincinnati social media strategist, stated that student loan debt will be a significant concern for her during the November election, as her debt of approximately $97,000 makes it challenging for her to meet her basic expenses.

The Biden administration's SAVE plan reduced her monthly federal student loan bill from $100 to $31. Additionally, she pays $650 monthly for her private student loans.

She stated that she intends to cast her vote for Biden due to her belief that she might lose the relief under Trump.