Teacher Tea
Breaking the Cycle: Loan Forgiveness and Teacher Retention
Student loan forgiveness can benefit both current and aspiring college students, as well as teachers who often carry student loan debt into their careers. By reducing their financial burden, loan forgiveness allows teachers to focus more on their students and less on the stress of having to address an intimidating amount of debt. And it can attract talented individuals into the teaching profession and improve teacher retention rates, contributing to a more stable education system.
So what does the upcoming Trump presidency mean for student loans?
In “Could Trump Reinstate the Student Debt that Biden Forgave? Here’s What Experts Say,” for CNBC, reporter Annie Nova addresses the concerns about a potential reversal of federal student loan forgiveness granted under the Biden administration, as Donald Trump, a critic of loan forgiveness, prepares to take office. Experts largely agree that it would be legally challenging for the Trump administration to reinstate previously forgiven loans.
Nova reviews some key points. For one, the Biden administration has canceled $175 billion in federal student loans for nearly 5 million borrowers, primarily through improvements to existing programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment plans, and experts explain that loan terms cannot be retroactively changed under existing regulations, protecting borrowers whose loans have been forgiven or are in progress under these programs. Instances of reinstated loans have been rare and have typically occurred due to administrative errors only. Still, borrowers are encouraged to keep records of notices confirming their forgiven loans and documentation showing $0 balances to safeguard against potential errors or disputes.
While concerns may persist, the experts cited in this article affirm that a president does not have the legal authority to reverse properly executed student loan forgiveness. Conservatives in government have argued, however, that student loan forgiveness, in principle, is unfair to those who have already paid off their loans or chosen not to attend college, and that it doesn't address the root issue of rising college costs.