Biden’s loan forgiveness efforts have faced major resistance, but people are bracing for worse under president-elect

Summary

Student loan borrowers fear worsened conditions under Donald Trump, who has criticized debt relief and oversaw a 99% rejection rate for Public Service Loan Forgiveness (PSLF) during his first term.

Many borrowers remain in limbo awaiting forgiveness, while others struggle with ballooning debt despite decades of payments.

Borrowers expect Trump to scale back or eliminate relief programs initiated by Joe Biden, which have forgiven $166.5 billion in loans.

Critics highlight flaws in the existing system, calling it a “nightmare” for those seeking relief.

  • nifty
    6•6 days ago

    I mean, ideally you’re right. Loans are a risky investment in some way, the risk being that you’re assuming some future income which will make it advantageous to take out a loan. However, if wages become historically stagnant, and the housing and job markets are historically unstable, then the social contract of “go to college and get a degree to be a productive member of society” is broken.

    Not one single guidance counselor in the 80s or 90s was telling students to not go to college. The fact is that college education become exorbitantly expensive because of the way govt. loans were structured. These are all systemic and economic issues, there’s not just individual responsibility at stake here.

    • @rottingleaf
      6•5 days ago

      The fact is that college education become exorbitantly expensive because of the way govt. loans were structured.

      In particular the way they guaranteed student loans so those would be given for a longer period of time and to, ahem, a lot of people. Which created a positive feedback loop.