Under the Biden administration, the U.S. Department of Education actively pursued student debt forgiveness through various relief programs, a contrast to President Donald Trump’s approach, which aimed to restrict such opportunities. Early in his presidency, Trump signed an executive order limiting eligibility for the Public Service Loan Forgiveness (PSLF) program and revised repayment plans, eliminating paths to debt cancellation.
Currently, the Biden administration’s repayment plan, known as Saving on a Valuable Education (SAVE), faces uncertain futures under Trump, especially after a U.S. appeals court blocked it following a GOP challenge. SAVE featured reduced monthly payments and faster debt cancellation, which experts believe may be dismantled. While other repayment options like Pay As You Earn (PAYE) and Income-Contingent Repayment will no longer offer forgiveness, the Income-Based Repayment (IBR) plan still enables borrowers to achieve debt cancellation, provided they meet specific criteria.
Notably, PSLF remains intact despite Trump’s executive order, with any changes not expected to retroactively affect current borrowers. The PSLF program, established in 2007, allows certain not-for-profit and government employees to have their loans forgiven after ten years of payments. It remains uncertain which organizations may be excluded under upcoming changes.
Additionally, federal borrowers have access to several other forgiveness options, such as the Teacher Loan Forgiveness program, which provides up to $17,500 for qualifying educators, and discharges under Borrower Defense or Total and Permanent Disability due to severe conditions. As federal measures tighten, experts recommend exploring state-level relief programs for further assistance.
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