As President Donald Trump returns to the Oval Office, student loan borrowers are awaiting possible changes.
While now-former-President Joe Biden released several student loan forgiveness plans that face legal challenges, Trump repeatedly attacked the plans at campaign rallies and promised to reverse them once he takes office.
Here’s what we know so far about how Trump could affect student loans – and why D.C. residents could be particularly impacted.
Project 2025 laid out major changes for student loan borrowers. While Trump has distanced himself from the conservative blueprint, several people with ties to the document already have been named to the administration.
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Project 2025 argues student loans and grants should be issued by the private sector and Congress should pass a Department of Education reorganization act to “reform, eliminate, or move the department’s programs and offices to appropriate agencies.”
The blueprint also calls for an income-driven repayment plan that would require borrowers to pay 10% of their income, with an exemption for those on the poverty line.
Liz King, senior program director of the Education Equity program at The Leadership Conference on Civil and Human Rights, questioned the proposal.
“Abundant research has shown that the poverty line, even in the rural South where $1 goes further, is an insufficient standard to use when determining the appropriate student loan payment. But in places where the cost of living is even higher, like the District of Columbia, it's outrageous,” she said.
D.C. has more student loan borrowers than any state, with an average federal student loan debt of nearly $55,000 per borrower, according to the Education Data Initiative. More than 17% of residents have student loan debt.
For every $10,000 increase in student loan debt, the odds of D.C. homeownership decreased by 8%, Kyle K. Moore — an economist with the Economic Policy Institute’s program on race, ethnicity, and the economy — and another researcher, Eduard Nilaj, found in a 2023 report. Their work accounted for factors such as age, income and credit score.
Black Americans are disproportionately affected by student loans, with the highest monthly repayments, according to the Education Data Initiative. Latino borrowers were more likely to delay starting a family due to student loan debt.
The changes would potentially harm borrowers, said Moore.
“It would lead to reduced access to student loans, but it would also increase the risk associated with taking on student debt,” he said.
Major changes to student loans affect whole families and communities, not just students, said Liz King, the senior program director of the Education Equity program at The Leadership Conference on Civil and Human Rights.
“When we're talking about access to higher education, it's not just about that one individual. It's about their family and their community,” she said.
“When you have student parents who are saddled with student loan debt, it interferes with their ability to support and provide the best start for their own children,” she added.
Potentially privatizing student loans
Project 2025 supports the privatization of student loans and grants, and the eliminations of the GRAD loan, Parent PLUS loan and the Public Service Loan Forgiveness program.
In 2023, out of the country’s $1.73 trillion in student loan debt, almost 93% of loans were federal, the Education Data Initiative said.
Moore said he doesn’t believe privatizing loans will serve borrowers.
“Even as we have a student debt crisis, privatizing that service will likely not result in a better situation, in fact, will probably make things worse for a lot of people, particularly those who are in the most vulnerable positions,” he said.
Experts advised student loan borrowers to stay engaged and use financial assistance resources.
“We want everyone to remember that just because Election Day is over doesn't mean the time to be civically engaged is over,” King said.