What Kamala Harris Means for Your Student Loans

• Vice President Kamala Harris has consistently backed broader student loan forgiveness than Biden’s current plans.

• As VP, she supported canceling up to $20,000 in student debt and pushed for more.

• Her track record includes securing $1 billion in relief for defrauded borrowers while serving as California’s Attorney General.

You’re probably anxious about the future of student loan forgiveness, especially with Biden endorsing Harris as the Democratic presidential nominee for 2024. If you’re waiting for relief under current initiatives, you’re facing some uncertainty. Understanding Harris’s approach can help you better understand what may lie ahead if Harris is able to defeat Trump at the polls.

Before we dive into Harris’s potential policies, let’s look at where we stand today:

• Total student loan debt in the U.S. has reached a staggering $1.77 trillion as of 2024.

• Approximately 43 million Americans hold federal student loan debt.

• The average federal student loan debt balance is $37,338.

• 1 in 5 Americans have student loan debt.

• 55% of students from public four-year colleges have student loans.

• Black and African American college graduates owe an average of $25,000 more in student loan debt than white college graduates.

Throughout her career, Harris has consistently advocated for student debt relief. Here’s a closer look at her track record:

As California Attorney General (2011-2017), Harris led a groundbreaking investigation into Corinthian Colleges and secured $1.1 billion in student loan debt relief for defrauded students. This set a precedent for holding for-profit colleges accountable.

During her 2020 presidential campaign, Harris proposed forgiving up to $20,000 in loans for Pell Grant recipients who started businesses in disadvantaged areas. While criticized for its complexity, this plan demonstrated her commitment to addressing student debt.

As Vice President, Harris has supported Biden’s efforts to cancel up to $20,000 in student debt. In 2022, she played a key role in canceling $5.8 billion in debt for Corinthian Colleges borrowers. Harris also was key in announcing forgiveness for public servants while delivering remarks at William Cramp Elementary School in Philadelphia, Pennsylvania. There, she unveiled a plan to forgive more loans for 25 million Americans, including complete forgiveness for those who’ve paid undergraduate loans for 20+ years or graduate loans for 25+ years.

Reports suggest Harris has privately advocated for even broader relief measures within the Biden administration.

Harris has made it clear: “Reducing student loan debt has been a priority throughout my career.” She’s consistently pushed for more relief, often advocating for broader forgiveness than what’s currently on the table.

As a graduate of Howard University, a historically Black college, Harris brings a unique perspective to the student debt conversation:

• HBCU Connection: Harris’s experience at an HBCU gives her firsthand insight into the challenges faced by students at these institutions, where borrowers are more likely to take on federal student loan debt.

• Focus on Racial Equity: Given that Black students on average owe $25,000 more than their white counterparts upon graduation, Harris might push for policies specifically addressing racial disparities in student debt.

• Increased HBCU Funding: The Biden-Harris administration has already secured $5.8 billion for HBCUs. As president, Harris might expand this support, potentially including debt relief programs tailored to HBCU students and graduates.

• Targeted Forgiveness: Harris could propose loan forgiveness programs that prioritize borrowers from underserved communities or those attending minority-serving institutions.

• Addressing Systemic Issues: Her background might lead to policies that not only provide debt relief but also address the root causes of higher debt burdens among minority students.

Harris has stated, “HBCUs are centers of academic excellence that have produced generations of Black leaders.” This sentiment, combined with her personal experience, suggests she may prioritize solutions that particularly benefit HBCU students and other underserved communities in her approach to the student debt crisis.

While we can’t predict the future with certainty, Harris’s track record gives us some solid clues about what you might expect:

Broader Debt Cancellation

Harris might push to revive and expand Biden’s plan to cancel up to $20,000 in student debt. This could mean more borrowers become eligible, or the forgiveness amount increases. For graduate students, who often have higher debt loads, Harris might propose even larger forgiveness amounts.

Interest Relief

The current proposal to forgive up to $20,000 in unpaid interest could be broadened under Harris. If you’ve been struggling with growing interest, this could significantly reduce your balance. This could be particularly impactful for Parent PLUS loan borrowers, who often face higher interest rates.

Help for Long-Term Borrowers

If you’ve been repaying for 20+ years, you might see enhanced relief. Harris has supported measures to aid those who’ve been in repayment for extended periods. This could include specific provisions for parents who took out PLUS loans years ago and are still repaying.

Simplified Repayment Plans

Income-driven repayment plans could become simpler and more accessible. This might mean lower monthly payments and clearer paths to eventual forgiveness for you. Harris might introduce tailored plans for graduate borrowers and parents with PLUS loans, recognizing their unique financial situations.

Targeted Relief Programs

Based on her past proposals, Harris might introduce forgiveness programs targeting specific groups. This could include entrepreneurs in underserved communities, graduates in public service roles, or professionals in high-need fields like healthcare or education. Given her background as a lawyer, she might also advocate for expanded loan forgiveness for those pursuing public interest law or other public service professions.

Prevention of Future Debt

Harris has backed making public colleges tuition-free for families earning up to $125,000 annually. While this won’t affect your current loans, it could help prevent future debt if you’re considering additional education. For graduate education, Harris might propose caps on borrowing or expanded grant programs to reduce reliance on loans.

Harris has stated, “We must ensure that higher education—including graduate and professional programs—remains accessible and affordable for all.” This suggests she recognizes the diverse needs of different types of borrowers and may seek comprehensive solutions addressing all aspects of federal student loans.

Although the Biden-Harris administration has shown commitment to student debt relief, several obstacles remain.

Before you start planning your debt-free future, consider these challenges:

1. Legal Hurdles: The Supreme Court’s decision to strike down President Joe Biden’s loan forgiveness plan last year sets a tough precedent. Any new initiatives from the White House will likely face similar scrutiny.

2. Political Opposition: Many Americans, particularly those aligned with Donald Trump’s policies, argue against broad forgiveness. They claim it’s unfair to those who’ve paid off loans or didn’t attend college. This divide makes passing legislation challenging.

3. Budget Concerns: Large-scale forgiveness is expensive. The Department of Education would need to justify the cost, and Congress would have to approve funding. This could be a hard sell in a divided government.

4. Policy Implementation: Even if a plan passes, the Department of Education would need time to roll it out. Remember how long it took to implement changes under the Biden-Harris administration.

5. Changing Political Landscape: With the next presidential election approaching, the future of student loan policies remains uncertain. A shift in the White House or Congress could dramatically alter the course of any forgiveness plans.

6. Public Opinion Shifts: While many Americans support some form of student debt relief, there’s no consensus on the scale or method. Public sentiment could influence future policies.

How might Harris’s policies compare to Trump’s stance on student loans?

While Harris supports broader student loan forgiveness, the proposals in the 2025 Presidential Transition Project, known as Project 2025 and designed for Trump suggest eliminating forgiveness programs and restricting borrower protections. Harris may continue or expand current forgiveness efforts, whereas Trump might shift loan responsibility to the Treasury Department and reduce federal involvement in student lending.

Will existing loan forgiveness programs change under a Harris administration?

It’s unclear how existing forgiveness programs like Public Service Loan Forgiveness might change under Harris. As Vice President, she supported expanding loan forgiveness. However, specific plans for existing programs haven’t been announced. As Harris develops her platform and chooses a running mate, more details may emerge about potential changes to current forgiveness initiatives.

How soon could any new policies be implemented if Harris becomes president?

The timeline for implementing new student loan policies under a Harris administration is uncertain. Factors like congressional support, legal challenges, and administrative processes could affect the speed of implementation. Some changes might be made quickly through executive action, while others could take months or years to enact.

How might Harris’s policies affect private student loans, if at all?

Harris’s policies are unlikely to directly impact private student loans, which are not federally managed. However, she might support changes to bankruptcy laws, making it easier to discharge private student loans. Such changes would likely face opposition from private lenders and require congressional approval.

While Harris’s potential presidency offers some hope, don’t bank on future forgiveness alone:

1. Stay informed about current repayment options and policy changes.

2. Continue managing your loans responsibly.

3. Explore existing forgiveness programs you might qualify for.

4. Consider your repayment strategy in light of potential changes, but don’t neglect your current obligations.

Addressing student debt is about removing “obstacles to the creation of wealth,” as Vice President Harris puts it. Stay engaged, stay informed, and keep working towards your financial goals – regardless of what happens in Washington.