President Joe Biden is intensifying efforts to address student debt before the transition of power to President-elect Donald Trump, facing both legal and political hurdles.

Amid legal setbacks and looming policy changes, Biden's administration has introduced new measures to ease student debt burdens, though their future under Trump remains uncertain, as Fox News reports.

In November 2024, the Department of Education announced an interim rule allowing borrowers additional time to enroll in long-term repayment plans.

This move extends the deadline for the Income Contingent Repayment program by three years, pushing it from July 2024 to July 2027. The revised rules, slated for implementation in July 2026, aim to give borrowers more flexibility. However, the timing means the Trump administration could revisit or adjust these plans.

Earlier in the month, the Biden administration unveiled a separate provision aimed at forgiving loans for borrowers deemed at high risk of default.

This one-time initiative specifically targeted individuals with an 80% or higher likelihood of falling behind on payments. In October, Biden also authorized the removal of $4.5 billion in debt for over 60,000 public service workers as part of his broader efforts to honor his 2020 campaign promise to address the student loan crisis.

Biden Faces Legal Obstacles in Debt Relief

Biden's campaign pledge included forgiving up to $10,000 for most borrowers and $20,000 for Pell Grant recipients. The relief was intended for those earning less than $125,000 annually and was projected to cost over $400 billion. However, this initiative faced significant setbacks.

In June 2023, the U.S.  Supreme Court ruled that the secretary of education lacked the authority to cancel more than $430 billion in student debt.

This decision marked a major roadblock for Biden's plans, forcing his administration to explore alternative pathways.

Subsequent attempts included partial debt forgiveness measures, such as canceling up to $20,000 in interest and principal for individuals who had been repaying loans for over 20 years.

Trump Administration Plans to Reassess

The future of these initiatives is uncertain under the incoming Trump administration. While Trump has expressed interest in overhauling the education system, he has not disclosed specific plans for handling Biden's student debt policies.

Former Secretary of Education Betsy DeVos has been vocal about the need for reform, stating in an interview with Fox News Digital, "There is every argument for if the taxpayers are going to be funding student lending, there better be ways to oversee it... It is a huge mess, and it needs to be rethought." She also emphasized the potential role of private-sector lending in reshaping student loan practices.

Biden's Efforts to Meet Campaign Pledge

Despite facing resistance, Biden has remained steadfast in his efforts to alleviate the burden on student borrowers. The extension of repayment deadlines and targeted forgiveness programs represent attempts to honor his promises within the constraints of his term.

The recent measures also highlight the administration's focus on public service workers and high-risk borrowers, two groups disproportionately affected by student debt.

These initiatives are intended to provide immediate relief and set a precedent for future policy.

Implications for Borrowers and Taxpayers

With Trump poised to take office, borrowers are left in a state of uncertainty. The Biden administration's plans, while ambitious, may face revision or rollback.

Taxpayers, too, are deeply invested in the outcome, as the cost of widespread forgiveness has been a contentious issue in public discourse.

As the transition nears, the debate over student debt continues to spotlight the broader challenges of America's education financing system. Whether Biden's final push will leave a lasting impact or be overturned remains to be seen.