Donald Trump Student loan forgiveness: As Donald Trump gets ready to become president again, big changes might come for student loan policies. During Joe Biden’s presidency, his administration made major efforts to reduce student loan debt, but now those efforts could be at risk.
Under Biden over 5 million borrowers had $183.6 billion in student loans forgiven, which is the largest amount ever canceled by any U.S. administration. Even though the Supreme Court blocked his plan to forgive up to $20,000 per borrower, Biden found other ways to give relief to millions of borrowers.
Education Secretary Miguel Cardona said, “Four years ago, President Biden made a promise to fix a broken student loan system. Today, life-changing student debt relief is possible for more than five million borrowers—more than any other administration in history.”
Before leaving office, Biden approved loan forgiveness for 150,000 more borrowers. This included 85,000 people who were defrauded by schools, 61,000 people with permanent disabilities, and 6,100 workers in public service.
Biden stated, “My Administration has taken historic action to reduce the burden of student debt, hold bad actors accountable, and fight on behalf of students across the country. I’m proud to say we have forgiven more student loan debt than any other administration in history.”
With Trump returning to office, these policies could change. Trump has strongly criticized Biden’s loan forgiveness plans. During a debate in September 2024, he called them a “total catastrophe.” One of Trump’s spending plans includes cutting Biden’s student loan programs by $200 to $330 billion. Biden’s original plan to forgive up to $20,000 in debt was expected to cost $400 billion, according to the Congressional Budget Office. If Trump rolls back these programs, fewer borrowers could qualify for help.
When Trump takes office on January 20, Congress, led by Republicans, is likely to play a key role in reshaping federal student loan policies. With the GOP controlling both the House and the Senate, changes could happen quickly.
