How These 5 Student Loan Forgiveness Programs May Shift Under Trump’s Second Term
The future of student loan forgiveness is once again in the spotlight, with recent discussions about potential policy shifts under a possible second term for President Donald Trump. Here’s an overview of key programs that may face changes, what Trump’s previous term could signal, and what borrowers should keep in mind.
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1. Public Service Loan Forgiveness (PSLF)
The PSLF program offers forgiveness on remaining student loan balances after 10 years of qualifying public service. During Trump’s first term, there were proposals to phase out PSLF for new borrowers and replace it with a streamlined income-driven repayment (IDR) system. This alternative plan would forgive loans after 15 years for undergraduate borrowers and 30 years for graduate borrowers, regardless of profession. While these changes didn’t pass, they reflect a continued interest in restructuring PSLF, which could become a renewed priority.
2. Income-Driven Repayment (IDR) Plans
IDR plans allow borrowers to repay loans based on a percentage of their income, with forgiveness possible after 20 or 25 years. The Trump administration previously suggested consolidating these plans into a single IDR option that would require borrowers to pay 12.5% of their discretionary income, with a 15-year repayment term for undergraduates and a 30-year term for graduates. While this would simplify options, it may also extend repayment terms for some borrowers.
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3. Borrower Defense to Repayment
This program was designed to help borrowers defrauded by their institutions. Under Trump’s previous term, policies became stricter under Secretary of Education Betsy DeVos, making relief eligibility more limited. Although many of these restrictions were reversed under the Biden administration, a renewed Trump administration might reintroduce tighter standards, reducing access to relief for some defrauded borrowers.
4. Total and Permanent Disability (TPD) Discharge
TPD Discharge forgives loans for those unable to work due to total and permanent disabilities. The Trump administration previously streamlined this process for veterans, although broader automation efforts stalled. Future policies may prioritize specific groups, possibly leaving other disabled borrowers with a more complex application process.
5. Closed School Discharge
When schools close before students complete their programs, the Closed School Discharge program forgives student loans for affected borrowers. The Trump administration had previously tightened requirements, making discharge an opt-in rather than an automatic process. A second Trump term could bring back these restrictions, making relief more challenging for borrowers from closed institutions.
What Does This Mean for Borrowers?
While the exact policies under a second Trump administration are yet to be determined, historical trends suggest a shift toward more restrictive criteria, longer repayment terms, and streamlined IDR plans. Borrowers should stay informed, particularly those enrolled in or considering loan forgiveness programs, to ensure their decisions align with the latest policies.
Why TitanPrep Is the Right Partner for You
Navigating these potential changes can feel overwhelming, but you don’t have to face them alone. TitanPrep has helped thousands of borrowers manage their loans, save money, and even achieve forgiveness. With $87M discharged through the Department of Education and $1.3M in total monthly savings for our clients, TitanPrep is the trusted leader in student loan assistance.
Our team of specialists will
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Help you stay on track for forgiveness, no matter how the policies change.
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Ensure your repayment plan works for your unique financial situation.
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Simplify the process so you can focus on what matters most to you.
Don’t wait for policy changes to catch you off guard. Contact TitanPrep today to get personalized support and guidance. Let’s make sure you’re prepared for whatever comes next.