The millions of Americans with federal student loan debt have endured some serious whiplash over the last few years.

Between a three-year break from monthly payment requirements, former President Joe Biden’s mixed success expanding loan relief and forgiveness, and the re-election of President Donald Trump, there have been a lot of twists and turns since the 2020 pandemic.

But 2025 marks more than just another momentum shift: With Trump and a newly fortified Republican party in charge in Washington, the era of leniency for student loan borrowers is over.

Not only are Trump and his fellow Republicans in Congress likely to unwind many Biden-era expansions, but they could look to limit or end programs and aspects of the federal student loan system that pre-date Biden’s time in office, according to Politico and other news outlets.

This may include loan cancellation options for borrowers who go to a school accused of misconduct, a provision that lets those with subsidized loans avoid paying interest while they’re still in college, and the Public Service Loan Forgiveness program — which was enacted during the George W. Bush presidency and dismisses loan balances for public servants like teachers and doctors after they’ve paid for 10 years.

The Trump administration has yet to spell out its plans for the federal student loan system, so nothing is certain. But even Biden acknowledged the coming change in the wind, withdrawing notice of proposed rule changes for his “Plan B” attempt at widespread student loan forgiveness just before leaving office. (“Plan A” was struck down by the Supreme Court in 2023 after being challenged by Republican opponents.)

For his part, Biden made student loan forgiveness and other forms of borrower support central to his presidential agenda, arguing that the $1.7 trillion in collective federal student debt — averaging almost $38,000 per borrower, according to one analysis — is overwhelming many Americans. And his administration did wipe out almost $190 billion in debt for targeted groups of borrowers — a total of 5.3 million — during his time in office.

Republican opponents, on the other hand, have argued that forgiveness and other subsidies are unjust bailouts — unfair to those who already repaid their loans or avoided college because of its cost.

If you ask those directly impacted, student loan relief is actually one of the few issues that transcends political divisions. In February 2024, the vast majority of college students — both those identifying as Republicans and Democrats — felt the government should do more to help them pay off their student debt, according to an Axios survey conducted by The Harris Poll.

But so far there have been few overtures from Republican lawmakers, apart from a proposal by New York Congressman Mike Lawler to lower the interest rate on federal student loans to 1%. (It’s higher than 6% on loans for this academic year.)

So what? The protections and accommodations afforded to borrowers over the last five years have ended, and those who default on loans will reportedly face collection efforts again later this year. If you don’t have one, now is the time to work out a strategy for paying your debt.

Many federal loans have consolidation options that can lower your interest rate, and even if Biden’s SAVE repayment plan is eliminated, there are other income-based repayment plans. Or you can refinance your loans (and SoFi can help with that.) And if you’re really struggling, you can apply for forbearance or deferment — though that may not stop interest from accruing.

Related Reading

•   What Trump and GOP Lawmakers May Have in Store for Student-Loan Borrowers (Business Insider via MSN)

•   They Thought They Were Nearly Done With Student Loans, but Then Came Trump (The New York Times via MSN)

•   Biden’s Education Grades: F on FAFSA, an Incomplete on Student Loan Forgiveness (NPR)


photo credit: iStock/hxdbzxy

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