What is the status of the Joe Biden student loan forgiveness programs in 2025?

As of March 2, 2025, the future of Biden's student loan forgiveness programs in 2025 is uncertain and heavily influenced by recent legal and political developments. Here's an overview based on the latest available information: Current Status of Biden's Programs The Biden administration has made significant efforts to provide student loan relief, approving over $189 billion in forgiveness for more than 5.3 million borrowers by January 2025 through existing programs like Public Service Loan Forgiveness (PSLF), borrower defense, and income-driven repayment (IDR) fixes. However, broader initiatives, such as the Saving on a Valuable Education (SAVE) plan and the "Plan B" mass forgiveness proposal, have faced substantial challenges. SAVE Plan: This income-driven repayment plan, which offered lower payments and faster forgiveness, was blocked by a federal appeals court ruling from the 8th U.S. Circuit Court of Appeals on February 18, 2025. The court determined that the Education Department exceeded its authority under the Higher Education Act by implementing large-scale debt forgiveness without explicit Congressional approval. This ruling effectively halts the SAVE plan, leaving 8 million enrolled borrowers in limbo, currently in an interest-free forbearance that does not count toward forgiveness timelines. Plan B and Hardship Relief: The Biden administration withdrew these proposed regulations in December 2024 to avoid legal precedents that could harm borrowers under the incoming Trump administration. These plans aimed to forgive debt for up to 30 million borrowers but were stalled by lawsuits and political opposition, and they are no longer moving forward. Impact of the Trump Administration With Donald Trump taking office on January 20, 2025, and Republicans controlling both the House and Senate, the landscape for student loan forgiveness is likely to shift dramatically: Potential Reversal of Biden’s Policies: Trump has previously called student loan forgiveness "illegal" and a "catastrophe," suggesting he may seek to dismantle Biden-era programs. Project 2025, a policy blueprint from the Heritage Foundation for a second Trump term, proposes eliminating PSLF, narrowing borrower defense, and replacing IDR plans with less generous options that require full repayment before any forgiveness. While Trump’s exact plans remain unclear, these proposals indicate a possible rollback of existing relief mechanisms. Congressional Action: Republicans are expected to prioritize a reconciliation package in 2025, potentially including student loan reforms. Proposals could cut funding for forgiveness programs (estimates suggest up to $330 billion less than Biden’s original $400 billion plan) and limit the Education Department’s authority to enact relief without Congressional approval. Some lawmakers even advocate abolishing the Education Department entirely, though this is less likely to succeed.

Legal Precedents: The 8th Circuit’s ruling sets a significant precedent, making it harder for future administrations to implement broad forgiveness without legislation. This could constrain any remaining Biden-era efforts even if parts survive initial Trump policies. What Happens in 2025? Existing Relief Continues Temporarily: Borrowers already approved for forgiveness (e.g., through PSLF or borrower defense) should receive it unless reversed by new policies. The Biden administration’s final actions in January 2025 included $4.2 billion for 150,000 borrowers and $4.5 billion for 261,000 Ashford University attendees, which are likely to proceed unless challenged. SAVE Plan Borrowers: The 8 million SAVE enrollees face uncertainty. Without the plan, they may revert to older, less affordable IDR plans like PAYE or ICR, potentially tripling monthly payments for some. The Education Department has not outlined a clear transition, and loan servicers may struggle with implementation, possibly leading to legal disputes. New Forgiveness Unlikely: Broad new forgiveness initiatives are improbable under Trump, given his stance and the Republican Congress. Any relief would likely require Congressional action, which is unlikely in the current political climate. Payment Pauses Ending: Protections like forbearance and paused credit reporting for defaults are set to expire in 2025, increasing financial pressure on borrowers. Conclusion In 2025, Biden’s student loan forgiveness programs are at a crossroads. While millions have benefited, key initiatives like SAVE are blocked, and the incoming Trump administration could undo much of Biden’s progress. Borrowers should prepare for potentially higher payments and fewer forgiveness options, though the full extent of changes depends on Trump’s policy specifics and Congressional priorities, which are still unfolding as of early March 2025. For the latest updates, borrowers should monitor announcements from the U.S. Department of Education and Federal Student Aid.

So, what happens to the student loan forgiveness programs under Donald Trump in 2025?

It’s tough to predict with absolute certainty what will happen to student loan forgiveness programs under Donald Trump’s administration, as it depends on a mix of his policy priorities, congressional support, and ongoing legal battles. However, based on Trump’s past statements, actions during his first term, and the current political landscape as of March 2, 2025, here’s a breakdown of what’s likely on the table. Trump has consistently opposed broad student loan forgiveness. During his first term (2017–2021), he proposed eliminating programs like Public Service Loan Forgiveness (PSLF) in his budget plans, though Congress didn’t go along with it. On the 2024 campaign trail, he called Biden’s forgiveness efforts a “total catastrophe” and “unfair” to those who paid off their loans. Now that he’s back in office, with Republicans holding slim majorities in Congress (53 Senate seats and a narrow House edge), he’s got more leverage to push his agenda—though not unchecked power. The Biden administration’s big wins—like $183.6 billion in debt relief for 5 million borrowers through PSLF expansions, disability discharges, and the SAVE repayment plan—are in the crosshairs. The SAVE plan, which cut payments and sped up forgiveness for some, is already on life support after legal challenges from Republican-led states. A federal appeals court blocked it in 2024, and the Trump administration could simply let it die by not defending it in court or by issuing new regulations to scrap it. Experts like Mark Kantrowitz predict SAVE is toast, with monthly payments for its 8 million enrollees likely to spike if it’s axed.

For existing programs like PSLF and older income-driven repayment (IDR) plans (e.g., Income-Based Repayment or IBR), total elimination is trickier. These were created by Congress, so Trump can’t just snap his fingers and end them—lawmakers would need to act. During his first term, he didn’t succeed in killing PSLF despite trying, and Congress might resist again, especially since it’s popular with public servants like teachers and nurses. However, Trump’s Education Department could tighten eligibility or roll back Biden-era expansions (like the PSLF “Buyback” program) through regulatory tweaks, making forgiveness harder to get. There’s also buzz about a broader overhaul. Project 2025—a conservative playbook Trump has distanced himself from but which echoes some GOP priorities—suggests replacing all IDR plans with one option that skips forgiveness after 20–25 years. Republicans in the House Budget Committee are floating similar ideas, like repealing SAVE and limiting PSLF, which could save billions but leave borrowers paying more. If they use budget reconciliation (needing only a simple majority), they might pull this off, though their thin House margin makes it a tightrope walk. On the flip side, forgiveness already granted—like through PSLF or Biden’s one-time relief—is almost certainly safe. Experts across the board, from Kantrowitz to the National Student Legal Defense Network, say clawing back discharged debt would be a legal nightmare and unprecedented outside cases of fraud or error. So, if your loans are already forgiven, you’re likely in the clear. Trump’s push to dismantle the Department of Education (DOE) could shake things up too. He’s been vocal about it—“move education back to the states,” he says—but that needs Congress, and past efforts (like under Reagan) flopped. Even if it happens, the $1.6 trillion student loan portfolio won’t vanish; it’d likely shift to another agency, like Treasury, with forgiveness programs potentially scaled back or restructured. Posts on X reflect current sentiment: some cheer Trump “eliminating” forgiveness for “wealthy liberals,” while others lament losing affordable repayment options, claiming it’ll hit the middle class hard. These are vibes, not facts, but they show the divide. Bottom line: Broad forgiveness (like Biden’s “Plan B”) is dead under Trump. SAVE is probably gone too, hiking payments for millions. PSLF and older IDR plans might survive but get stingier. Nothing’s set in stone—Congress, courts, and Trump’s own moves will shape the outcome—but borrowers should brace for less relief and higher costs unless a wild card flips the script. Keep an eye on DOE announcements and legal rulings in 2025 for the real story. impact on borrowers federal education budget

American student loan debt is sky-high, with some estimates putting the total number over $2.19 trillion—that’s higher than all U.S. credit card and auto loan debt combined. President Joe Biden and his administration made numerous attempts to alleviate the burden of student loans, including an executive action that would have canceled student loans for 43 million borrowers. But in the end, these efforts did not have the major impact many had hoped for. Instead, Biden took smaller steps that eventually helped over 5 million Americans trim their student debt. In the waning days of his presidency, borrowers with disabilities, who attended schools that cheated and defrauded their students, and public service workers had their loans forgiven. In total, over $183 billion in relief was provided. “Since Day One of my administration, I promised to ensure higher-education is a ticket to the middle class, not a barrier to opportunity, and I’m proud to say we have forgiven more student loan debt than any other administration in history,” Biden said in a press release.

Today, borrowers are staring down a new administration with an avowed populist agenda—things like cancelling the tax on tips and reducing the price of eggs. But few expect the Trump administration to be very forgiving when it comes to college students and their six-figure loan balances. It’s still early, but President Donald Trump has hinted at cancelling the Public Service Loan Forgiveness program or even the entire Department of Education. “We are concerned about ways that there could be a deconstruction of the ability for the Department of Ed to do its work, including the administration of the Title IV programs, including student loans,” says Yolanda Watson Spiva, president of Complete College America. While the possibilities could be monumental, experts say borrowers do not need to sound the alarm bells yet since uncertainty remains. Here’s what borrowers need to know—and do right now. It’s not time to panic about student debt issues—yet When it comes to loans, students and borrowers shouldn’t panic yet, says Betsy Mayotte, president of The Institute of Student Loan Advisors, an organization that provides free student loan advice to borrowers. While many borrowers are worried about potential changes, it is still early in the new administration, and little to no guidance has been provided, she adds. If the Department of Education is dismantled, which Mayotte and Watson Spiva both say is unlikely since it would require an act of Congress, current federal student loans won’t be majorly impacted. Loans would just transfer hands, and the terms and conditions would not change. see complete article HERE

Joe Biden: Latest student loan forgiveness deal............. Jan. 2025

Joe Biden will leave office with the legacy of approving the greatest amount of student debt relief of any president, changing the lives of millions of Americans. Many of these borrowers waited for years for the forgiveness while paying down their loans, in some cases sacrificing major life events such as buying a home due to their debt. Trump announces $20B US investment by Emirati businessman While grateful to see their loan balance disappear, borrowers who received forgiveness under Biden lament a system they say is holding back millions of others. “I finally got the loans forgiven in December 2023 and received the zero balance letter. How is it affecting me almost a year later? It really set me back over paying on these loans for years. I never built significant savings at all. I don’t have anything saved. I’m a solo parent, and I do not receive child support,” said Christinia Winton, a mother of two and public servant in Arizona who received loan forgiveness on almost $30,000 through the Public Service Loan Forgiveness (PSLF) program. The Biden administration forgave some $180 billion of student loans in total, taking away the debt entirely for almost 5 million Americans. The relief has largely been split up between those on income-driven repayment plans such as PSLF, the borrower defense program that forgives loans to those cheated by their schools and individuals with disabilities. One of Biden’s accomplishments in office was fixing some of the problems with PSLF, a program meant to give public service workers such as teachers and police a means to receive student debt relief if they make 120 qualifying payments. Biden made regulatory improvements on the program and gave a one-time count adjustment of payments to help get borrowers on the right track and shorten their repayment time. Lisa Ansell, an educator from California, was one of the people who got their loans cancelled in 2021 when Biden made those changes, after she was denied eight times. “I should have been eligible for public service loan forgiveness in 2017, which would have been the first cohort, because public service loan forgiveness was signed into law in 2007 […] I applied in 2017 and, of course, I was denied, no valid reason. We know that the Department of Education likes to invent reasons to prevent people from receiving their lawful cancelation,” said Ansell, the California chapter president for Student Loan Justice.

Jimmy Carter on his way back to Washington, where he remained an outsider Ansell said she was relieved, but “what I felt was anger and resentment because I had been kept in indentured servitude to the Department of Education for close to five extra years, and because of that, I was never able to save up any money.” While Biden forgave the most student debt of any president, his efforts affected only a small portion of the 45 million borrowers. But not for lack of trying: Biden did attempt to give $10,000 in student loan relief for all borrowers, but it was struck down by the Supreme Court. He also attempted to go through the regulatory process and expand relief to more groups but ran out of time and had to rescind the measure before President-elect Trump returns to office. Those losses were a significant blow to Biden’s agenda after he pledged sweeping relief on the campaign trail. “There are people that absolutely feel slighted, and sometimes their anger is maybe, maybe misplaced on the Biden administration,” said Daniel Collier, assistant professor of higher and adult education at the University of Memphis, when asked about borrowers who missed out on relief. “To be fair to people, though, the Biden administration has done a poor job of communicating with borrowers [what has been accomplished], especially these last few years, especially since the court cases have stalled,” he added. From borrowers who did get relief, Collier has heard the forgiveness gave them financial stability, career freedom to change jobs after exiting PSLF and a drop in mental distress over worrying about the debt. The loan forgiveness also takes away a major barrier for young Americans toward purchasing a home. A 2023 report from the Student Debt Crisis Center found more than half of borrowers with defaulted loans said their student debt prevents them buying a home. The Hill has reached out to the Biden administration for comment.J complete article here

More student loan relief, thanks to Joe Biden!

President Joe Biden's administration announced on Friday another $4.28 billion dollars in student loan relief for nearly 55,000 public service workers. The announcement brings the total loan forgiveness by the Biden administration to "approximately $180 billion for nearly 5 million Americans," according to a fact sheet from the Department of Education. The forgiveness will be delivered to individuals enrolled in the Public Service Loan Forgiveness program (PSLF), which allows for debt forgiveness for people in jobs like firefighting, nursing and teaching after 10 years of continuous payment.

The Biden administration has made fixes to this program that had failed to deliver student loan relief to many due to poor implementations and errors in the program, officials said. "The public servants approved for debt cancellation today include teachers, nurses, service members, law enforcement officials, and other public service workers who have dedicated their lives to giving back to their communities and who are finally earning the relief they are entitled to under the law," Biden said in a statement. Of the nearly 5 million borrowers who have had more than $180 billion in debt relieved by the administration, more than 1 million were through the PSLF. The relief for those PSLF borrowers totals about $78 billion, the administration said. forcomplete article see: https://abcnews.go.com/Politics/biden-announce-428-billion-student-loan-relief-55000/story?id=116975860

what is in the debt celing deal for student loans?

Speaker McCarthy says student loan payment pause 'gone' under debt ceiling deal. Here’s what that means.

The debt ceiling deal finalized between President Joe Biden and House Speaker Kevin McCarthy on Sunday would reinstate student loan payments and the accrual of interest in late August. "The pause is gone within 60 days of this being signed," McCarthy said on Fox News, though the legislation, as with existing plans to sunset the pause, actually stipulates a timeline of 60 days after June 30. "So that is another victory because that brings in $5 billion each month to the American public." The Biden-McCarthy deal would suspend the debt limit until January 2025. The plan now heads to Congress for a vote. 'TWO VERY DIFFERENT PLACES':As Supreme Court gears up to rule on student loan cases, Americans are split on debt forgiveness Are student loans still deferred? Yes. Student payments and interest have been on pause since the onset of the pandemic, a moratorium first adopted and extended under former President Donald Trump and then extended again under Biden. But that won’t be the case for long. The Biden administration, whose mass student debt forgiveness plan is currently held up in the Supreme Court, has faced mounting pressure to lift the moratorium. Even before Sunday’s deal, efforts were underway to bring student loan payments back. A bill that passed out of the House last Wednesday would end the payments as well as Biden’s broader plan to relieve up to $20,000 in student loan debt for Americans with individual incomes of less than $125,000. Before that, in March, the student loan refinancing company SoFi sued the federal government over the pause, seeking to end it. BIDEN'S STUDENT LOAN FORGIVENESS PLAN:Lawsuit filed to end student loan payment pause Education Department prepares for return to student loan payments Education Secretary Miguel Cardona has stressed the moratorium has an expiration date. In a Senate Appropriations Committee hearing in May, the secretary said borrowers should prepare to start making payments again no later than 60 days after June 30 or after the Supreme Court issues its decision on the two cases challenging Biden’s broad relief plan. "The emergency period is over, and we’re preparing our borrowers to restart," Cardona said in the hearing. But as reported by Politico, internal Education Department documents indicate it could be until October at the earliest that the process resumes. According to the documents, department officials anticipate needing several months to transition back into payments. In a statement, a White House official said Biden "protected the student debt relief plan in its entirety," including that for mass forgiveness and for improvements to income-driven repayment options. "The administration announced back in November that the current student loan payment pause would end this summer — this agreement makes no changes to that plan," the official said, noting Biden retained his administration's "authority to pause student loan payments, as appropriate, in the event of future emergencies." *************************** for complete article go to:https://www.usatoday.com/story/news/education/2023/05/28/debt-ceiling-deal-student-loan-debt-payment-pause/70266126007/

The Biden Administration’s Student Loan Debt Relief Plan

Part 1. Final extension of the student loan repayment pause Due to the economic challenges created by the pandemic, the Biden-Harris Administration has extended the student loan repayment pause a number of times. Because of this, no one with a federally held loan has had to pay a single dollar in loan payments since President Biden took office. The Biden-Harris Administration’s one-time student debt relief plan is necessary to address the financial harms of the pandemic, provide borrowers with a smooth transition back to repayment, and help borrowers at highest risk of delinquency or default once payments resume. While litigation is preventing us from providing the relief needed to avoid these harms, we don’t think it’s right to ask you to pay on loans you wouldn’t have to pay were it not for the lawsuits challenging the program.

The Supreme Court heard arguments in February 2023, and we’re hopeful the Court will rule in the Administration’s favor and allow us to move forward with the debt relief program. The pause will end 60 days after the Supreme Court makes a decision on the case. If no decision has been made by June 30, 2023, payments will resume 60 days after that. Visit StudentAid.gov/coronavirus regularly for the latest information on the payment pause and other COVID-19 relief.  Frequently Asked Questions Do I need to do anything to extend my student loan pause? No. The extended pause will occur automatically.   Part 2. Providing targeted debt relief to low- and middle-income families To smooth the transition back to repayment and help borrowers at highest risk of delinquencies or default once payments resume, the U.S. Department of Education will provide up to $20,000 in debt relief to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. Get details about one-time student loan debt relief. In addition, borrowers who are employed by nonprofits, the military, or federal, state, Tribal, or local government may be eligible to have all of their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. For more information on eligibility and requirements, go to PSLF.gov.  FOR COMPLETE ARTICLE SEE: https://studentaid.gov/debt-relief-announcement Frequently Asked Questions How do I know if I am eligible for debt relief?  To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households).  If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.  If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.   What does the “up to” in “up to $20,000” or “up to $10,000” mean?  Your relief is capped at the amount of your outstanding debt. For example: If you are eligible for $20,000 in debt relief, but have a balance of $15,000 remaining, you will only receive $15,000 in relief.   What is the Public Service Loan Forgiveness Program? The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full time for federal, state, Tribal, or local government; the military; or a qualifying non-profit. Learn more about PSLF and apply. Temporary changes, which ended on Oct. 31, 2022, provided flexibility that made it easier to receive forgiveness by allowing borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF. A borrower who missed the limited PSLF waiver deadline has one more chance to have their payment count corrected. Learn more about the opportunity for the one-time account adjustment. Visit the one-time student loan debt relief page for more information.  Part 3. Make the student loan system more manageable for current and future borrowers Income-based repayment plans have long existed within the U.S. Department of Education. However, the Biden-Harris Administration proposed a rule to create a new income-driven repayment plan that will substantially reduce future monthly payments for lower- and middle-income borrowers. The draft rule would: Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan. Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment. Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less. Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.  The Biden-Harris Administration is working to quickly implement improvements to student loans. Check back to this page for updates on progress. If you’d like to be the first to know, sign up for email updates from the U.S. Department of Education.