After four years of empty promises, overturned executive orders, and dashed hopes and dreams of eager supporters, President Biden’s crusade to eradicate student loan debt has come to a bumpy end. Under Joe’s administrative forbearance, both the collection of and accumulation of interest on federal student loans was paused, with rates set at 0% starting in 2020. During his term, the President made repeated attempts to bypass Congress and forgive a portion of the loans entirely, each time met with judicial overturn. Still, he and his protégé Kamala showed no hesitation in using the debt as campaign fodder on the road to reelection for 2024, despite finding at every turn that its forgiveness was unworkable.
Now, President Trump has resumed both interest and payments for federal student loans, set to begin for all borrowers May 5th and bringing an end to what his administration calls the “confusing limbo” of Biden’s ever-oscillating program. Reportedly, less than 40% of such loans are paid up to date.
In the meantime, the Republican House has been reworking an education plan set to streamline- and codify- loan-related issues, which it claims will save up to $330 billion. The legislation aims to restructure debt repayment programs, eliminate high-interest loans, and create a pathway to forgiveness achievable after 360 regular payments. According to the House Education and Workforce Committee Chairman Tim Walberg (R-MI), the bill also “brings accountability and holds schools financially responsible for loading students up with debt.” The school liability portion is critical, as for decades, colleges and universities have increased costs and trapped more young people in foreseeably lifelong cycles of debt without offering the tangible benefits promised by the pursuit of higher education.
May 5th will mark not only the resumption of interest and payments but also the beginning of a Treasury Offset Program that will allow salaries and even tax refunds to be seized in the event of extreme delinquency- something 5 million borrowers are already facing, and another 4 million are approaching. If people do not immediately begin addressing their remaining debt, it is estimated that up to 25% of all federal borrowers could end up defaulting over the next few months.
The House GOP must create a comprehensive education plan that allows Americans to pursue genuine debt freedom rather than a lifetime of debt service. Following three years of lofty promises from President Biden aimed at getting Democrats reelected- rather than actually helping Americans- the people need legitimate change and a concrete plan that doesn’t get overturned by the courts quarterly.
While it is unfortunate more borrowers did not take advantage of nearly five years of interest freezes to pay down their loans, they will ideally have an opportunity under Trump’s restructuring to do so. Additionally, colleges and universities must accept some accountability in offering vulnerable young people insurmountable debt for degrees worth significantly less. The American people deserve the utmost transparency and an action plan on which they can rely rather than ever-oscillating promises.
How do you feel about President Trump resuming collection of student loans?
Hilary Gunn is a Connecticut native with a degree in Criminal Justice from the George Washington University. She works for a nonprofit and has previously collaborated with the CT GOP as an activist, political campaign manager and field director, and social media organizer. She is currently serving in her fourth term of municipal office and has previously acted as a delegate on the Republican Town Committee.