Many student loan borrowers are eager to understand how their repayment plans may be affected or if they could potentially receive loan forgiveness with the new administration in charge.

Experts have warned that some student loan forgiveness plans could be ‘on the chopping block’ now that Donald Trump has taken office.

During his campaign, Trump did not extensively discuss plans for relieving student debt, but he did express strong opposition to Joe Biden’s comprehensive forgiveness proposals.

Throughout his term, Biden implemented various programs that led to the forgiveness of $188.8 billion in debt for 5.3 million borrowers, although some of these initiatives faced significant backlash and scrutiny.

His Saving on a Valuable Education (SAVE) plan, in particular, has faced legal action brought by Republican state attorneys. 

On his campaign trail, Trump instead spoke about the possible creation of a free higher education academy, and the elimination of the US Department of Education. 

‘That suggests that this administration’s efforts will be geared toward reducing the cost of higher education from the outset, rather than on forgiving debt,’ said Denny Ceizyk, consumer lending analyst at Bankrate.

Since taking office, Trump has yet to make any announcements about potential changes.  

But whether borrowers are enrolled in a forgiveness program or not, experts have urged that there are steps they can take to prepare.  

‘At this point, it’s important to note that everything is speculation, because we have no specifics,’ Kate Wood, lending expert at NerdWallet, told DailyMail.com.

Trump has put forward Linda McMahon to be the next Education Secretary, but there have yet to be any confirmation hearings, she said.

‘But the Trump administration has proposed that they could try to put through significant changes to student loan programs with the idea that they would be simplifying repayment by having fewer plans,’ she said. 

‘The catch for borrowers is that simplifying repayment by having fewer plans could mean ending up with more limited forgiveness.’

Plans that would be ‘on the chopping block’ in that scenario, she said, are the Public Service Loan Forgiveness, or PSLF, plan, and the SAVE plan.

The SAVE plan has been in the courts for a while, and a Trump administration is most likely not going to defend that plan, Wood said.

However, she added, these programs are not necessarily the easiest to simply get rid of with the stroke of a pen. 

‘Trump could face some of the same court challenges repealing student debt relief that Biden did trying to put them in place,’ Ceizyk, from Bankrate, told DailyMail.com.

‘There is also the question of whether or not eliminating forgiveness provisions in the repayment plan would require some sort of Congressional approval.’  

That said, experts expect that it may take some time before loan forgiveness is addressed by the incoming administration. 

‘If you look at the administration’s priorities, the education stuff isn’t showing up there,’ said Wood.

A key talking point for Trump on the campaign trail was the dismantling of the Department of Education.

Although the details of this proposal are relatively unknown, it would transfer the administration of student loans to each individual state, rather than through one centralized federal department. 

Despite the uncertainty, experts say there are proactive steps that borrowers in repayment can take in order to quell any anxiety.

‘It’s important to find what repayment, grace period and deferment options you have sooner than later,’ said Ceizyk. 

Make sure you have updated contact information for your current servicer and contact them about your situation, he added. 

If you currently have a $0 payment, take a look at your budget to see how much extra cash you have each month that could be allocated towards a student loan payment.

‘Borrowers facing any type of financial hardship should also discuss forbearance options with their loan servicers as soon as possible.’

For those enrolled in the SAVE plan, Wood suggested that some borrowers may want to look at what other options may be available to them.  

‘The future of the SAVE plan is not promising, so borrowers may want to switch to PAYE or ICR, which began taking new applicants in December,’ said Wood.

She recommends logging on to studentaid.gov and using the student loan simulator to see how your payments would change if you went on to one of those plans.  

Those currently in school or applying for fall 2025 should submit the FAFSA as soon as possible, she added, in case the change in administration causes any processing delays.

‘It’s been a really rough year for student loan borrowers. There was a lot of news, and most of the news was not positive,’ Wood told DailyMail.com. 

Some Americans may be waiting to see what happens before making any potential changes – and there is no need to panic if that is the case for you, she said.

‘If you’re on a repayment plan that works for you, if you’re making regular payments and chipping away at that, that’s fantastic and you’re doing what you need to do.’