Presidential contenders Trump and Biden's strategies towards student loans affecting possible votes by students
In the upcoming 2024 U.S. presidential election, student loan relief initiatives have become a significant point of contention between Democratic candidate Joe Biden and his Republican challenger, Donald Trump.
Joe Biden's student loan relief initiatives focus on broad federal loan forgiveness and a new repayment plan aimed at reducing borrower payments and forgiving balances over time. The Biden administration has launched numerous student loan relief initiatives, including a large-scale student loan forgiveness plan that could benefit up to three-quarters of federal student loan holders. This plan, reinstated by a federal judge in August 2024, aims to cancel debt for millions of borrowers.
One of Biden's most notable proposals was a 2022 plan to forgive up to $20,000 for Pell Grant recipients and $10,000 for other eligible borrowers earning under $125,000 annually. Although partially blocked by the Supreme Court, this led to a scaled-down “SAVE” plan launched in 2023 that cuts monthly payments and forgives balances after 10–20 years based on income. As a result, the Biden administration has cancelled over $150 billion in student debt for millions of borrowers as of early 2024.
On the other hand, Donald Trump’s administration, as criticized by Democrats and some lawmakers, had ended expansive forgiveness programs and favoured stricter policies that limit access to federal student loans. Trump opposed widespread debt cancellation as "unfair" and fiscally irresponsible, favouring programs that limit federal authority to forgive loans without Congressional approval.
Trump's approach generally sought to curtail access to federal loans and rollback Department of Education initiatives aimed at broad forgiveness, which Democrats argue harms low- and middle-income borrowers. Critics of Trump-era policies argue they shifted debt burdens and made relief harder to obtain for many students, while supporters frame this as prudent fiscal responsibility and reducing taxpayer liability.
As of now, over 40 million borrowers owe $1.77 trillion in student loans. Around 29% of US citizens perceive student loan debt as a "national crisis". One in five adults (18%) claim that student loan debt will play a massive role in their vote this November.
In the first presidential debate of 2024, scheduled for Thursday 27 June, student loans are expected to be a dominant topic. Trump has welcomed the court's decision regarding student loan debt, but has criticized President Biden's plans to cancel student loan debt, calling it a "vile" publicity stunt. He has also claimed that students are not buying into Biden's student loan relief plan and that the student loan program he proposed is not legal.
During his time in office, Biden has forgiven a cumulative sum of $167 billion in loans for 4.75 million borrowers. However, Trump's polls are down, but he claims to be leading in young people by numbers that nobody has ever seen.
Amidst these contrasting views, 27% of Americans blame the federal government for not providing enough financial assistance to borrowers. As the election approaches, the student loan debate continues to heat up, with significant implications for the millions of Americans struggling with student debt.
In the upcoming presidential debate, student loan relief initiatives are expected to be a dominating topic, with Democratic candidate Joe Biden advocating for broad federal loan forgiveness and a new repayment plan, while Republican challenger Donald Trump criticizes these plans as a publicity stunt and claims that his proposed student loan program is not legal.
General news outlets have reported that around 29% of U.S. citizens perceive student loan debt as a "national crisis," and one in five adults claim that student loan debt will play a significant role in their vote this November. These debates about student loan relief and forgiveness are rising in importance as the election nears, with Education-and-self-development being a key issue for millions of Americans struggling with student debt.
