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GOP-led states block Biden’s latest student debt relief plan
Bạn đang xem: Georgia student loan debt and forgiveness in limbo under Trump
Touted the most affordable student loan repayment plan ever, the SAVE plan would have provided debt relief to over 30 million Americans.
Student loan debt is a serious problem for many Georgians – and the path forward is unclear.
Around 1.7 million Georgians owe a collective $70.1 billion in student loans. Georgia has the greatest amount of student debt out of any state in the South and the third highest nationally.
After years of federal repayment pauses and attempts at widespread forgiveness, many are wondering what student loans will look like under Donald Trump’s upcoming second term.
The latest on student loan forgiveness
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President Joe Biden spent much of his time in the White House trying to pass sweeping student loan forgiveness. But it seemed that at every turn, Republican-led states – including Georgia – were there to stop him.
One of his most recent initiatives, which could have provided debt relief to some 30 million Americans, was blocked in October. Along with six other states, Georgia sued the Biden administration, arguing that the proposal was illegal and would cause harm from potential tax revenue losses.
As of Dec. 20, the Department of Education withdrew these plans. In a notice posted to the Federal Register, the department said it was instead going to prioritize “helping borrowers manage the final elements of the return to repayment” during the last days of the Biden administration.
Trump is not expected to make student loan forgiveness a priority in his second term.
During his previous stint in the White House, he proposed ending Public Service Loan Forgiveness, a program that delivers forgiveness to public sector workers after 10 years of payments. His administration also tried to limit debt relief for borrowers who had been scammed by for-profit colleges.
Abolishing the Department of Education
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Trump has repeatedly said that he wants to eliminate the Department of Education and move education back to the states. But it isn’t that simple – abolishing a government agency requires an act of Congress.
Republicans have the majority in both chambers of Congress, however, so there is a possibility that Trump could succeed.
According to a report from Forbes, oversight of federal student loans could be transferred to other agencies. But this could create inconsistent policies and less protection for borrowers.
How could this impact Georgians? As it stands, Georgia borrowers reportedly owe an average of $42,026, significantly higher than the national average of $36,200. Further complicating an already bureaucratic system could exacerbate Georgians’ financial situations, or at the least, make the debt harder to pay back.
Melissa Cruz is an elections reporting fellow who focuses on voter access issues for the USA TODAY Network. You can reach her at [email protected] or on X, formerly Twitter, at @MelissaWrites22.
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