As President Joe Biden prepares to exit office at the end of the month, the country’s roughly 40 million federal student loan borrowers should expect significant changes to their student debt relief options.
President-elect Donald Trump, who takes office soon, has expressed a more critical stance on such relief programs, which means that many of the recent initiatives under the Biden administration, including the widely discussed Saving on a Valuable Education (SAVE) plan, may not continue.
If borrowers are experiencing severe financial hardship, they may still be eligible for deferments or forbearances under the new administration.
One of the most anticipated shifts is related to the policies surrounding student loan forgiveness and repayment plans.
These income-driven repayment plans adjust borrowers’ monthly payments based on their income and family size, providing some relief for those struggling financially. Both plans offer a path to loan forgiveness after a certain period of time, and they will remain available for enrollment until at least July 1, 2027.
For example, those who are unemployed can request an unemployment deferment, while those facing other financial challenges may qualify for an economic hardship deferment.
Though the landscape of student loan relief will shift significantly under the incoming administration, some programs are more likely to remain intact.