Trump Could Reverse Biden’s Student Loan Relief Policies, According to Piper Sandler

Donald Trump could potentially reverse significant aspects of President Biden’s student loan relief initiatives if he wins the 2024 election, according to a report from Piper Sandler strategists released on Thursday.

Should Trump be elected, he may utilize executive action to dismantle Biden’s income-driven repayment (IDR) reforms, potentially resulting in increased payment rates for student borrowers and reduced debt cancellation opportunities. This change would particularly affect low-income and middle-income borrowers, who have been the primary beneficiaries of Biden’s reforms.

The strategists suggest that Trump’s possible rollback of student loan relief could be part of a broader set of policy changes aimed at decreasing government expenditures.

By contrast, a victory for Vice President Kamala Harris in the 2024 presidential election would likely lead to a continuation and expansion of Biden’s debt relief efforts. Harris is expected to uphold current student loan policies and may also pursue the cancellation of additional student and medical debt.

The Piper Sandler report emphasizes that “Trump could reverse Biden’s income-driven repayment reforms to student loans,” highlighting the potential financial repercussions for borrowers. Under Biden’s leadership, these reforms were intended to reduce payment amounts and forgive debt for low-income individuals after a certain repayment period. Reversing these reforms could lead to higher monthly payments for borrowers, along with fewer opportunities for debt relief.

In addition to focusing on student loan assistance, Trump might also implement changes to the Supplemental Nutrition Assistance Program (SNAP), an area where Biden’s administration has increased benefits. The strategists note that such a reversal could result in a reduction of SNAP benefits by approximately $30 billion annually, representing about a 25% decrease, which would further strain lower-income households financially.

Trump’s strategy is expected to align with his overarching regulatory and fiscal policy objectives, which include tax reductions for businesses and higher-income individuals, while also seeking to cut government spending.