However, former President Donald Trump made a surprising reference to student loans during the debate. In a sharp critique of the Biden-Harris administration, he accused them of “taunting” borrowers with the prospect of student loan forgiveness.

The Student Loan “Question” at the Debate

The topic of student loans emerged indirectly when Trump was asked whether he would veto a national abortion ban. In his response, which meandered away from the original question, Trump shifted to the issue of “terminating student loans.” 

Trump claimed that borrowers were “taunted” with promises of loan forgiveness that were ultimately blocked by the courts. He also argued that the forgiveness attempt was unfair, asserting that student loan forgiveness was struck down because it would have been unjust to “the millions and millions of people who had to pay off their student loans.”

Were Borrowers Taunted?

Whether or not borrowers were actually “taunted” depends largely on perspective. On one hand, the Biden administration’s efforts to forgive student debt can be seen as sincere attempts to alleviate a significant financial burden for millions of Americans. From this viewpoint, it’s likely unfair to say borrowers were taunted.

On the other hand, the hope and excitement that many borrowers felt when the possibility of forgiveness was on the table may have turned into disappointment when those efforts were halted by the courts. This could lead some to feel as though they were misled or given false hope.

Politically, the issue divides along party lines. Republicans may accuse Biden of making promises he couldn’t deliver, while Democrats might blame the Republican attorneys general who initiated the lawsuits and the Trump-appointed Supreme Court justices who ruled against the forgiveness plan.

Another Perspective: The SAVE Plan and Biden’s Second Attempt at Forgiveness

It’s easy to let the final outcome of the forgiveness efforts cloud our judgment when analyzing the decisions that led to this point. But instead of focusing solely on Biden’s failed attempt at student loan forgiveness, it’s worth considering his other initiatives, such as the SAVE plan and his second attempt at loan forgiveness, both of which are currently blocked in the courts and face an uncertain future.

Would borrowers be better off if the Biden administration had not attempted to create a better repayment plan or a new method of loan forgiveness? If borrowers want the administration to drop these fights, it might be fair to say they are taunting borrowers. If borrowers want the administration to attempt to prevail in court, it’s hard to argue that the administration is taunting them.

The Politics of Student Loans

Student loans have become a political football, with borrowers caught in the middle as they try to navigate the shifting political tides in Washington, D.C. 

The lines have been drawn, and borrowers will need to plan their student loan repayment strategies with the understanding that they must account not only for changes in their personal circumstances but also for multiple possible outcomes from ongoing lawsuits and upcoming elections.

Stay Up to Date: Student loan rules are constantly changing, and temporary programs create deadlines that can’t be missed. To help manage this issue, I’ve created a monthly newsletter to keep borrowers up to date on the latest changes and upcoming deadlines.

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Harris’ Past Positions on Student Loans

Kamala Harris’ 2020 presidential campaign and her Senate tenure provide some insight into her views on higher education:

• Free Public College: Harris previously supported making public universities free for most Americans, a bold but expensive step toward addressing the root problem of student debt. Though this idea hasn’t resurfaced in the current race, it remains a potential cornerstone of her platform.
• Lower Interest Rates: During her 2020 campaign, Harris proposed slashing interest rates to 1.88%, a significant reduction that could save borrowers thousands over the life of their loans.
• Targeted Loan Forgiveness: Harris suggested $20,000 in forgiveness for Pell Grant recipients who start businesses in disadvantaged communities. This complicated plan was criticized for its narrow applicability, making it less likely to return in its original form.

Likely Policy Directions

A Harris administration would likely focus on defending and expanding Biden’s student loan initiatives:

• Defending the SAVE Plan: If Trump is re-elected, he might end legal challenges to the SAVE Plan, jeopardizing the program’s future. Harris would likely fight to preserve it.
• Pursuing Forgiveness 2.0: The White House has already announced plans for a Forgiveness 2.0, and it still might happen before the election. Even if it does, litigation before it happens is likely. A Harris administration could defend the plan, which has a much greater chance at surviving a legal challenge.
• Expanding Bankruptcy Relief: Biden’s administration made strides in allowing more borrowers to discharge their loans in bankruptcy. Harris could continue this underutilized program.

Challenges and Opportunities

The biggest lesson from Biden’s presidency is that major changes are difficult without significant congressional support. Without finding 60 votes in the Senate, massive changes are unlikely. That said, Harris could continue fixing broken programs like IDR, PSLF, and Borrower Defense to Repayment rather than pushing for sweeping reforms.

However, there are areas of potential bipartisan support:

• Employer Contributions: Expanding the ability of employers to help with student loan repayments could gain traction.
• Tax Relief: Harris might push to extend or permanently eliminate taxes on forgiven student loans.

Accountability and Enforcement

Harris has a track record of holding for-profit colleges and big banks accountable. She has made it a cornerstone of her pitch to the American people. As President, she could intensify oversight of loan servicers and continue fighting against predatory schools.

The Future of Free College

Though her free college proposal hasn’t reemerged, making public education free could be a first step toward addressing the student debt crisis. Right now, any forgiveness is treating a symptom of a much larger problem: college is too expensive.

If we address the root issue, a one-time fix to help the millions of Americans with student debt becomes far more likely to succeed.

Final Thoughts

A Harris presidency would likely continue Biden’s work by protecting existing student loan programs, pushing for gradual improvements, and finding common ground for bipartisan support. Additionally, she could prioritize holding loan servicers and predatory institutions accountable.

While the Presidential election will be crucial for borrowers, it’s not the only vote that matters. The makeup of Congress, especially considering recent Supreme Court rulings, will significantly influence the future of student loan policies and how the next four years unfold for borrowers.

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