Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
InCapital Direct
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
InCapital Direct
Home»Personal Finance»Trump and Student Loans: What Borrowers Can Expect in 2025 and Beyond
Personal Finance

Trump and Student Loans: What Borrowers Can Expect in 2025 and Beyond

November 6, 2024No Comments5 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Trump and Student Loans: What Borrowers Can Expect in 2025 and Beyond
Share
Facebook Twitter LinkedIn Pinterest Email

Former President Donald Trump, a Republican, has won the U.S. presidential election, beating out the Democratic candidate, Vice President Kamala Harris. He’s headed back to the White House in January.

After four years of Democratic leadership under President Joe Biden, which included a historic expansion of borrower protections and roughly $175 billion in student loan forgiveness for nearly five million borrowers, Trump is poised to overhaul the federal student loan system and reign in relief options for struggling borrowers. Compared to Harris’s vision, Trump has a starkly different approach to student loan policy.

If you’re repaying federal student loans, here’s what you might face in the four years ahead — according to the Republican party’s official platform, Trump’s history in office and Project 2025, a playbook for the next Republican president overseen by a conservative think tank.

Broad student loan forgiveness is very unlikely

However, the incoming Trump administration still has power to sway the effort in their desired direction and to drive the appeals process — and he could instruct the Education Department to give up the proposal entirely. Trump would most likely not support the forgiveness plan, echoing the Republican party’s opposition to student loan forgiveness. Republican-led states filed lawsuits that took down Biden’s original student loan forgiveness plan of up to $20,000 per borrower in 2023, along with lawsuits currently circling the SAVE repayment plan and Biden’s forgiveness “plan B.”

SAVE and other affordable income-driven repayment plans could disappear

Instead of SAVE and other existing IDR plans, Project 2025 calls for a single IDR option that would generally increase monthly payments for borrowers relative to SAVE and other current options. It would also aim to remove the loan forgiveness option (under current IDR plans, borrowers can get forgiveness after 20 or 25 years of payments).

See also  Credit Cards You Can Get Without a Social Security Number

“While income-driven repayment (IDR) of student loans is a superior approach relative to fixed payment plans, the number of IDR plans has proliferated beyond reason,” the document says. “And recent IDR plans are so generous that they require no or only token repayment from many students.”

Public Service Loan Forgiveness is under threat

The future of the Public Service Loan Forgiveness (PSLF) program, which erases federal student loans for teachers, doctors, firefighters, government employees and other nonprofit workers after 10 years of public service, is uncertain.

As president and on the campaign trail, Trump has called for restricting loan forgiveness overall and making PSLF harder to access, experts say. At one point in 2019, while Trump was last in office, the Education Department rejected 99% of PSLF applications, according to a report from the Government Accountability Office.

Project 2025 goes even further, calling for the program first introduced by Republican President George W. Bush in 2007 to shutter: “The Public Service Loan Forgiveness program, which prioritizes government and public sector work over private sector employment, should be terminated.” Ending the PSLF program entirely would require Congress to pass new legislation.

College alternatives poised to expand

Trump has spoken in support of college alternatives, and his administration could increase investment in trade schools, career-training programs and community colleges. His platform says it “will support the creation of additional, drastically more affordable alternatives to a traditional four-year College degree.”

Borrower protections could decrease

Trump’s record indicates that he may be opposed to strengthening borrower defense to repayment, a longstanding program introduced in 1995 to discharge debt for borrowers who have been defrauded by their schools. For example, in 2020, then-President Trump vetoed a bipartisan resolution that would have overturned a 2019 borrower defense rule that made it tougher for students who say they were defrauded by colleges to get federal student loan discharge.

See also  Big investors cautious on 2025 markets, Trump policies, inflation pose risks

Project 2025 calls for Congress to end the Education Department’s broad ability to forgive loans through the borrower defense program. Instead, it says, the Department should only be allowed to discharge loans in limited situations in which “convincing evidence exists to demonstrate that an educational institution engaged in fraud toward a borrower in connection with his or her enrollment in the institution and the student’s educational program or activity at the institution.”

Pell Grant amount could stay flat

The federal Pell Grant program, which gives undergraduates from low-income backgrounds up to $7,395 per year to help pay for college, has been around since the 1970s. Biden increased the maximum Pell award by $900 during his term — the largest expansion in over a decade.

Though Trump is unlikely to strike down the Pell, further increases to the maximum award are uncertain while he’s in office. Project 2025 supports maintaining Pell grants in their current “voucher-like” form.

SS’s 2024 election deep dives

What would the Trump economy look like? Find out where former President Donald Trump stands on economic issues like battling inflation, medical debt, jobs, health care, housing, child care, small businesses and more.

How Trump and Harris Aim to Address Your Health Care When it comes to health care, the candidates have been light on the details. Harris has focused on things like lowering prescription drug prices; expanding Medicare care coverage; and restoring federal abortion rights. Trump says he supports IVF coverage, but wants to leave abortion to the states. He also said that he has only a “concept” of a plan to replace the Affordable Care Act.

See also  How to consolidate student loans & why you might want to

Smart Money’s 2024 Presidential Election Series

Hosts Sean Pyles and Anna Helhoski discuss the grand economic promises made by presidential candidates and the intricate realities of presidential influence on the economy to help you understand the real effects on your daily finances.

Source link

Borrowers expect Loans Student Trump
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleWise brushes off political change; Ingenico pushes crypto | PaymentsSource
Next Article Stocks making the biggest moves after hours: QCOM, HUBS, LYFT, BMBL

Related Posts

Student loans will be handled by Small Business Administration: Trump

March 21, 2025

Understanding Hidden Debt and How to Fight Back 

March 21, 2025

Student Loan Recertification Extensions Announced For Borrowers

March 21, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Lender groups want SBA to increase fees, tighten underwriting rules

February 27, 2025

What is a crypto wallet?

February 2, 2025

Complete Guide to Managing Someone Else’s Money Later in Life

October 15, 2024
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

EarnIn launches Early Pay for paychecks | PaymentsSource

March 21, 2025

How to Retire Like an Adult: An 11-Point Checklist for Responsible Freedom

March 21, 2025

How Trump’s Chaos Is Exacerbating The Financial Woes Of Colleges

March 21, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 incapitaldirect.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.