With the 2024 election fast approaching, student loan borrowers are watching closely to see how the next administration might address student loan relief and repayment options. With nearly 1 in 5 U.S. adults carrying student debt, policies in this area could have a big impact on borrowers’ financial outlook.
Each candidate has spoken about debt relief with varying perspectives, but detailed plans are still limited. Here’s a breakdown of where things stand for borrowers who are navigating student loans and want to prepare for any changes that may come post-election.
Student Loan Lawyer Explains The Current Landscape
Under the current administration, the Department of Education has implemented several relief efforts. Over 5 million borrowers have benefited from federal loan forgiveness in the last four years, with more than $175 billion canceled under different programs. These include the Public Service Loan Forgiveness (PSLF) program, which forgives loans for those working in qualifying public service jobs after ten years of qualifying payments, as well as ongoing support for income-driven repayment plans like the Saving on a Valuable Education (SAVE) plan. These programs aim to ease the financial burden for specific groups of borrowers, though some face ongoing legal challenges.
Candidate Insights: What Borrowers Should Know
With the election ahead, here’s a neutral look at each candidate’s public positions on student loans:
- Vice President Kamala Harris
While Harris hasn’t laid out specific campaign promises for student loan forgiveness, she has publicly supported the current administration’s initiatives. A Harris presidency could mean a continuation of the same policies currently in place, including efforts to expand PSLF and promote the SAVE income-driven repayment plan. Harris has expressed a commitment to reducing student debt, especially for those facing financial hardship, though details remain limited. - Former President Donald Trump
Trump has voiced opposition to broad-based student loan forgiveness, indicating he would likely end the Biden administration’s debt-relief initiatives if elected. He has previously shown some support for income-driven repayment plans, which cap payments based on a borrower’s income and can offer loan forgiveness after extended repayment. During his last term, Trump suggested combining these plans to simplify repayment but hasn’t shared any current plans for such reforms.
Planning Ahead: How Borrowers Can Prepare
With different approaches on the table, it’s essential for borrowers to stay informed and know how to navigate their options based on changes in policy. Here are a few ways Kaplan Law Firm advises borrowers to prepare:
- Keep an eye on PSLF and Income-Driven Repayment (IDR) options: For those in public service or low-income situations, PSLF and IDR plans can offer manageable ways to work toward debt relief. Because these programs can sometimes change, it’s helpful to stay updated on eligibility criteria and recertification requirements.
- Stay proactive with financial planning: Regardless of who takes office, one certainty is that financial literacy remains key. Borrowers can benefit from making a budget that accounts for loan payments, other debt, and long-term financial goals.
- Consult with a student loan professional: Student loan policies are complex, and understanding your options—especially when policies could change—is crucial. Consulting with a professional can help ensure you’re making the best decisions for your financial future.
In this evolving landscape, Rae Kaplan and Kaplan Law Firm remain committed to helping borrowers navigate the challenges of student debt. Be sure to stay tuned to our blog for more updates on policy changes and tips to help you make informed choices in managing your student loans.