​How should student loan borrowers prepare before Donald Trump takes over the presidency? 

06/01/2025
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06:50
CSTAs 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. One of the most anticipated shifts is related to the policies surrounding student loan forgiveness and repayment plans. 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Valuable Education (SAVE) plan, may not continue.With the Biden administration’s student loan forgiveness plans already withdrawn and the future of the SAVE plan uncertain, borrowers need to prepare for what’s ahead. Experts have suggested several actions that borrowers can take now to stay ahead of changes.Though the landscape of student loan relief will shift significantly under the incoming administration, some programs are more likely to remain intact.One key program that’s not expected to disappear is the Public Service Loan Forgiveness (PSLF) program, which has long helped federal employees and certain nonprofit workers reduce or eliminate their student loans after ten years of qualifying payments. PSLF, enacted under President George W. Bush in 2007, is protected by federal law and would require an act of Congress to repeal.In light of the uncertainty surrounding the SAVE plan, borrowers still have access to other affordable repayment options, such as the Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) 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.If borrowers are experiencing severe financial hardship, they may still be eligible for deferments or forbearances under the new administration. For example, those who are unemployed can request an unemployment deferment, while those facing other financial challenges may qualify for an economic hardship deferment. There are also specialized deferments available for individuals in certain situations, such as graduate fellowship deferments, military service deferments, and even cancer treatment deferments.