How Trump's election could impact student loan forgiveness.

• The cancellation of student debt for millions of Americans through the U.S. Department of Education is likely to stop with the election of Donald Trump, who considers the initiative "disgusting" and "illegal."
• The 40 million Americans who were repeatedly promised a reduction to or complete elimination of their debt will have to prepare to restart or continue making their monthly payments.

The cancellation of student debt for millions of Americans through the U.S. Department of Education is likely to stop with the election of Donald Trump, who considers the initiative "disgusting" and "illegal."

In January, when Trump returns to the White House, he is likely to instruct his administration officials to cease defending Biden's student loan forgiveness programs in court, as many of these initiatives are currently embroiled in legal disputes initiated by Trump's fellow Republicans.

Mark Kantrowitz, a higher education expert, stated that the Trump administration can inform the court about withdrawing its defense in the case.

In a June 18 rally in Racine, Wisconsin, Trump cheered as the Supreme Court ruled in 2023 to block Biden's initial student loan cancellation plan.

""He got rebuked twice, and it's going to be rebuked again," Trump said."

The Biden administration's latest student loan forgiveness efforts, known as Plan B, are likely to fail in court without the administration's attorneys fiercely defending it. As a result, the 40 million Americans who were repeatedly promised a reduction to or complete elimination of their debt will have to prepare to restart or continue making their monthly payments.

U.S. District Judge Matthew Schelp, a Trump appointee, issued a preliminary injunction against Biden's revised student loan forgiveness plan, which would benefit as many as 3 in 4 federal student loan holders when combined with the administration's previous efforts, according to an estimate by the Center for American Progress.

According to Kantrowitz, the Republicans are likely to delay the court cases timeline, while the Biden administration will attempt to speed it up based on the election results.

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.

Student loan forgiveness likely to dry up under Trump

Biden has granted more student debt relief than any other president. Over 5 million individuals have had their loans canceled, totaling over $175 billion in debt relief. This has been achieved through enhancing existing student loan relief programs, which had previously faced numerous issues.

Over 1 million individuals have had their debt erased under the Public Service Loan Forgiveness program, which was enacted by President George W. Bush in 2007. This program enables eligible not-for-profit and government employees to have their federal student loans forgiven after 10 years.

The Education Department stated that only 7,000 individuals had received debt relief under PSLF before Biden took office. Additionally, the rejection rate for the program was as high as 98% in certain years.

It's uncertain this relief will continue under Trump, experts said.

"According to Kantrowitz, the Biden administration has been making periodic loan forgiveness announcements, but this practice would end during a Trump administration."

Trump's first term saw him propose to eliminate the PSLF program, reduce affordable repayment options for borrowers, and end the government's subsidy of federal student loans, which covers interest for borrowers in school, experiencing economic hardship, or unemployed.

If Republicans maintain their Senate majority and gain control of the House, Trump may be able to fulfill his campaign promises.

Mike Pierce, the executive director of the Student Borrower Protection Center, stated that the plans pose a real threat and will endanger the financial stability of millions of working families.

While many voters support Trump's stance on student loan relief, they also question the fairness of forgiving loans for those who have benefited from higher education.

A national poll from mid-May 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.

Many families are forced to borrow to send their children to college due to spiraling higher education costs, which is an increasingly necessary step to land among the middle class. This student debt disproportionately affects women and people of color.

Trump's friendly approach to the for-profit school industry is a concern for consumer advocates and borrowers, as he himself ran a school called Trump University that specialized in real-estate business training. Many attendees of the school claimed to have been misled with false advertising and high-pressure sales tactics.

During his presidency, Trump put a stop to a regulation that aimed to offer loan forgiveness to individuals who were deceived by their schools.

According to Pierce, the Department of Education under Trump disregarded federal law and refused to absolve the debts of students who were swindled by their schools.

The vice president-elect is another vocal critic of student loan forgiveness.

"Sen. JD Vance of Ohio, a Yale Law School graduate, wrote on X in April 2022 that forgiving student debt is a massive windfall to the rich, college-educated, and corrupt university administrators in America. Republicans must fight this with every ounce of their energy and power."

Vance's portrayal of debt relief as a benefit for the well-off is hypocritical and incorrect, according to Jane Fox, chapter chair of the Legal Aid Society Attorneys union, UAW local 2325.

"Senator Vance, who went to an elite institution and worked in private equity, rarely needs debt relief, while student debt forgiveness is a concern for the working class, as stated by Fox."