As the presidential race heats up, student loan borrowers should consider how their vote could impact their financial future. Under President Biden, borrowers have seen significant changes, including multiple attempts at forgiveness, program fixes, and the introduction of the SAVE plan. A Kamala Harris presidency could build on these efforts, but what might that look like?
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.
