Trump's win brings uncertainty to borrowers hoping for student loan forgiveness

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Trump's win brings uncertainty to borrowers hoping for student loan forgiveness

2024-11-09 12:43 Last Updated At：12:50

Savannah Britt owes about $27,000 on loans she took out to attend college at Rutgers University, a debt she was hoping to see reduced by President Joe Biden’s student loan forgiveness efforts.

Her payments are currently on hold while courts untangle challenges to the loan forgiveness program. But as the weeks tick down on Biden's time in office, she could soon face a monthly payment of up to $250.

"With this new administration, the dream is gone. It’s shot,” said Britt, 30, who runs her own communications agency. “I was hopeful before Tuesday. I was waiting out the process. Even my mom has a loan that she took out to support me. She owes about $18,000, and she was in the process of it being forgiven, but it’s at a standstill.”

President-elect Donald Trump and his fellow Republicans have criticized Biden's loan forgiveness efforts, and lawsuits by GOP-led states have held up plans for widespread debt cancellation. Trump has not said what he would do on loan forgiveness, leaving millions of borrowers facing uncertainty over their personal finances.

The economy was an important issue in the election, helping to propel Trump to victory. But for borrowers, concerns about their finances extend beyond inflation to include their student debt, said Persis Yu, managing counsel for the Student Borrower Protection Center.

“That’s a big part of what is making life unaffordable for them is this burden of expenses that they can’t seem to get out from under,” Yu said.

Student loan cancellation was not a focus of the campaign for either Trump or Vice President Kamala Harris, who steered clear of the issue at her political events. The issue came up just once in the September presidential debate, when Trump hammered Harris and Biden for failing to deliver their promise of widespread forgiveness. Trump called it a “total catastrophe” that “taunted young people.”

Biden promised the student loan cancellation program during his run for the presidency. From its launch, Biden's loan forgiveness faced relentless pushback from opponents who said it heaped advantage on elites and came at the expense of those who repaid their loans or did not attend college.

Biden’s first plan to cancel up to $20,000 for millions of people was blocked by the Supreme Court last year. A second, narrower plan has been halted by a federal judge after Republican-led states sued. A separate policy intended to lower loan payments for struggling borrowers has been paused by a judge, also after Republican-controlled states challenged it.

Bob Eitel, who served during the first Trump administration as a senior counselor to the education secretary, said he expects the president-elect will move to rescind the loan cancellation regulations.

“The Trump administration may pursue different avenues of loan relief, but it will not be the mass, blanket types of forgiveness that the current administration has pursued,” said Eitel, president and co-founder of the Defense of Freedom Institute for Policy Studies.

Overall, Biden's efforts were relatively unpopular, even among those with student loans. Three in 10 U.S. adults said they approved of how Biden had handled student loan debt, according to a poll this spring from the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research. Four in 10 disapproved. The others were neutral or didn’t know enough to say.

Project 2025, the blueprint for a hard-right turn in American government that aligns with some Trump priorities, calls for getting the federal government out of the student loan business and doing away with repayment plans that pre-date the Biden administration.

Even without directly addressing student loans, Trump has made promises that would affect them. He has pledged to eliminate the U.S. Department of Education, which manages the $1.6 trillion federal student loan portfolio. It's unclear which entity would take that responsibility if the department were eliminated, which would require approval from Congress.

“The American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail. He will deliver,” said Karoline Leavitt, a spokesperson for the Trump-Vance transition.

Yu noted the Biden administration managed to cancel student loans for about 5 million borrowers, even though the signature forgiveness effort has been blocked. The administration did it by leaning into loan cancellation programs already in effect. For example, an existing student loan forgiveness program for public service workers has granted relief to more than 1 million Americans, up from just 7,000 who were approved before it was updated by the Biden administration two years ago.

“A lot of the cancellation that we saw in the last couple of years was because the Biden administration was committed to making the programs that are actually enshrined in law work for people," Yu said.

Sabrina Calazans, 27, owes about $30,000 on federal student loans from her college days at Arcadia University in Pennsylvania. Her payments also have been on hold, but she could soon face a monthly payment of over $300.

“As a first-generation American, I live at home with my family, I contribute to our household finances, and that payment is a lot for me and so many others like me,” said Calazans, who is originally from Brazil.

In her role as managing director for Student Debt Crisis Center, Calazans said she has been telling people to stay up to date on developments by using the loan simulator on the Federal Student Aid website and reading updated information on forgiveness qualifications and repayment programs.

“There’s a lot of confusion about student loans," Calazans said, and not just among young people. "We’re seeing a lot of parents take out more debt for their children to be able to go to school. We’re seeing older folks go back to school and having to take out loans as well.”

Associated Press education writer Collin Binkley in Washington, D.C.. contributed to this report.

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FBI says driver in New Orleans rampage acted alone, was '100%' inspired by Islamic State group

2025-01-03 02:37 Last Updated At：02:42

NEW ORLEANS (AP) — The U.S. Army veteran who drove a pickup truck into a crowd of New Year’s revelers acted alone, the FBI said Thursday, reversing its position from a day earlier that he likely worked with others in the deadly attack that officials said was inspired by the Islamic State group.

The FBI also revealed that the driver, Shamsud-Din Jabbar, a U.S. citizen from Texas, posted five videos on his Facebook account in the hours before the attack in which he proclaimed his support for the militant group and previewed the violence that he would soon unleash in the city's famed French Quarter district.

“This was an act of terrorism. It was premeditated and an evil act,” said Christopher Raia, the deputy assistant director of the FBI's counterterrorism division, calling Jabbar “100% inspired” by the Islamic State.

The attack killed 14 revelers, along with Jabbar, who was fatally shot in a firefight with police after steering his speeding truck around a barricade and plowing into the crowd.

It was the deadliest IS-inspired assault on U.S. soil in years, laying bare what federal officials have warned is a resurgent international terrorism threat. That threat is emerging as the FBI and other agencies brace for dramatic leadership upheaval after President-elect Donald Trump's administration takes office.

Seeking to assuage concerns about any broader plots, Raia stressed that there was no indication of a connection between the New Orleans attack and a Tesla Cybertruck explosion Wednesday outside Trump’s Las Vegas hotel.

The FBI continued to hunt for clues, but said that 24 hours into its investigation, it was now confident that the 42-year-old Jabbar was not aided by anyone else in the attack, which killed an 18-year-old aspiring nurse, a father of two and a former Princeton University football star.

Officials have reviewed surveillance video showing people standing near an improvised explosive device that Jabbar placed in a cooler along the city's Bourbon Street, where the attack occurred, but authorities “do not believe at this point these people are involved ... in any way,” Raia said.

Investigators were also trying to understand more about Jabbar's path to radicalization, which they say culminated with him picking up a rented truck in Houston on Dec. 30 and driving it to New Orleans the following night.

The FBI recovered a black Islamic State flag from his rented pickup and reviewed five videos posted to Facebook, including one in which he said he originally planned to harm his family and friends, but was concerned that news headlines would not focus on the “war between the believers and the disbelievers,” Raia said. He also left a last will and testament, the FBI said.

Jabbar joined the Army in 2007, serving on active duty in human resources and information technology and deploying to Afghanistan from 2009 to 2010, the service said. He transferred to the Army Reserve in 2015 and left in 2020 with the rank of staff sergeant.

Abdur-Rahim Jabbar, Jabbar's younger brother, told The Associated Press on Thursday that it “doesn’t feel real” that his brother could have done this.

“I never would have thought it’d be him,” he said. “It’s completely unlike him.”

He said that his brother had been isolated in the last few years, but that he had also been in touch with him and he didn’t see any signs of radicalization.

“It’s completely contradictory to who he was and how his family and his friends know him,” he said.

In New Orleans on Thursday, a still-reeling city inched back toward normal operations. Authorities finished processing the scene early in the morning, removing the last of the bodies, and Bourbon Street was set to reopen at some point later in the day, according to an official familiar with the matter who spoke on condition of anonymity to the AP.

The Sugar Bowl college football game between Notre Dame and Georgia, initially set for Wednesday night and postponed by a day in the interest of national security, was still on for Thursday. The city planned to host the Super Bowl next month.

“This is one of the safest places on earth," Louisiana Gov. Jeff Landry said. "It doesn’t mean that nothing can't happen.”

Tucker reported from Washington, and Mustian reported from Black Mountain, North Carolina. Associated Press reporters Stephen Smith, Chevel Johnson and Brett Martel in New Orleans; Jeff Martin in Atlanta; Alanna Durkin Richer, Tara Copp and Zeke Miller in Washington; Darlene Superville in New Castle, Delaware; Colleen Long in West Palm Beach, Florida; and Michael R. Sisak in New York contributed to this report.