President Joe Biden’s efforts to cancel student debt for tens of millions of Americans are under threat as Donald Trump prepares to take office. Borrowers, including those who have received forgiveness through the Public Service Loan Forgiveness program, are bracing for their relief to be further hampered.
Mary Ann Rockwell, a 72-year-old librarian in upstate New York, has struggled with her student loans for years. Despite completing the paperwork for loan forgiveness, she is still waiting for it to happen, leaving her “in limbo”. Rockwell fears that Trump’s administration will cancel all debt relief programs, which could leave borrowers like her facing a house payment of hundreds of thousands of dollars.
Sarah Babcock, a self-employed acupuncturist and single mother in Massachusetts, has been paying off her student loans for over 25 years. She owes more than she originally borrowed and is struggling to make ends meet. Babcock fears that bankruptcy could become a reality if Trump’s administration pulls the plug on debt relief programs.
Chris Alldredge, who runs the student debt relief group Do Us Part, is also waiting on relief under the Public Service Loan Forgiveness program. His loan balance has increased significantly due to interest, and he fears that Trump’s administration will not work with urgency to implement reforms.
Existing relief programs are expected to be scaled back or shut down entirely under the second Trump administration. Borrowers say the system is already flawed, with issues such as incorrect calculations of service hours and lengthy wait times for assistance.
As Trump takes office, borrowers like Rockwell, Babcock, and Alldredge will be left wondering if they will ever receive the relief they need to retire or achieve financial stability.
Source: https://www.theguardian.com/money/2024/dec/29/student-debt-relief-trump