First-generation college students face uneven prospects well after college. Nirat.pix/www.shutterstock.com
Many student loan borrowers could see their bills double under Donald Trump's second term if his administration chooses not to defend the SAVE plan in court, or if Republicans in Congress eliminate the plan, according to a report.
President Joe Biden's student loan repayment plan capped the monthly payment requirements at 5% of the borrower's income, which is half of what they were under the REPAYE plan. But President-elect Trump can change that.
CNBC reported that of the 8 million student loans, 4 million are enrolled in the SAVE program, which helps those making less than $15 an hour, by reducing their payments to $0. Biden's plan also cuts the repayment period from 20 to 25 years down to 10.
Business Insider previously estimated that Biden has used several programs to cancel $175 billion in student loan debt for approximately 5 million students. Trump has objected to this, calling it "vile" during the 2024 campaign. When he was in the debate with Vice President Kamala Harris, Trump called the program "a total catastrophe."
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Trump has also advocated killing the entire Department of Education, which manages $1.6 trillion in federal student loan debt. Education Week reported that a bill has already been filed.
Salon pointed out that over the past four years, Republican-led states have attacked the SAVE plan, even going so far as to sue the Biden administration to stop it.
Bob Eitel, senior counselor to the secretary of education, told CBS News that he expects everything will be rolled back.
"The Trump administration may pursue different avenues of loan relief, but it will not be the mass, blanket types of forgiveness that the current administration has pursued," Eitel said.
Currently, the SAVE program is on pause after many legal challenges.
"When Trump returns to the White House in January, borrowers enrolled in SAVE should be prepared for that forbearance to come to an end," CNBC cited consumer bankruptcy lawyer Malissa Giles.
Student loans remain the only debt that cannot be forgiven in a bankruptcy proceeding.
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