Staff Reports
President-elect Donald Trump has made it abundantly clear that he plans to overhaul the Department of Education in his second term, and the implications are enormous for the debt forgiveness schemes championed by President Joe Biden. The Biden administration’s promise to wipe the slates clean for student loan borrowers may soon face a rude awakening if Trump has his way.
During his 2020 campaign, Biden made a bold statement about forgiving large amounts of student debt. Of course, reality fell short of those grand aspirations, largely thanks to a 2023 Supreme Court decision that wasn’t exactly cheering from the sidelines for his initiatives. Nevertheless, Biden managed to craft a narrative around providing relief to certain demographics, including public servants and low-income individuals, throwing billions their way like confetti at a parade.
In a last-ditch effort to lock in his legacy just a week before the 2024 election, Biden’s team attempted to implement a new rule that would give Secretary of Education Miguel Cardona the power to wipe out entire student loan balances for individuals facing alleged hardships. It sounds good on paper, but one has to wonder how generous this “hardship” really is when the ink hasn’t even dried on the legislation.
Trump’s second term could undo Biden’s student loan forgiveness https://t.co/nm1F8AvI6Y
— Washington Examiner (@dcexaminer) November 20, 2024
As Trump gears up for action, he has kept his cards close to his chest regarding how he’ll tackle Biden’s student loan initiatives. Notably, he hasn’t even named a nominee for his Secretary of Education, signaling his intention to possibly dismantle the very department responsible for these financial messes. The Saving on a Valuable Education (SAVE) program, which allows borrowers earning below a certain threshold to make $0 payments and caps repayment periods at 20 to 25 years, is already facing the chop from several Republican state attorneys general who aren’t shy about taking legal action.
The backdrop to this contentious financial atmosphere is a host of conservative thinkers, including prominent voices like Tucker Carlson, who have urged a more robust approach to the student loan crisis. Carlson hit the nail on the head when he pointed out that student debt overshadows all other forms of personal debt, distorting the economy and frustrating an entire generation. Instead of forgiving debts with a magical wand, Carlson suggested that a more responsible approach would be to hold colleges accountable for the loans they co-sign, capping loan amounts, and enforcing stricter regulations.
While it seems unlikely that Trump can entirely eliminate the Department of Education—thanks to Senate math that would make even a seasoned strategist’s head spin—he can initiate significant changes at the department without needing congressional approval. Previous musings from the Trump camp hinted at moving the Education Department’s responsibilities under the purview of the Department of Labor, or even having the Department of Treasury assume control of its loan programs. It’s all about keeping the government lean, mean, and more effective at serving American families.
As the dust settles on this political battlefield, experts remain divided on the pragmatic next steps. Some assert that Trump could simply kick back and allow the courts to overturn Biden’s recently established, but legally questionable, edicts. Perhaps the best move is to play the waiting game, letting nature take its course as litigation works itself out. For now, it appears the battle over student loan forgiveness may soon become a cautionary tale rather than a real-life reprieve for borrowers across the nation.
