Economic and Political Insights

Economic and Political Insights

Economic Policy

Student Debt 2025: What Biden Tried, What Trump Changed, and a Better Way Forward

Biden leaned on IDR, Trump narrowed it with RAP, and borrowers are still stuck. Here’s how to fix it.

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David Bernstein
Aug 27, 2025
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Introduction

America moved from Biden to Trump and student debt remains a pressing problem for many American households. Democrats have leaned heavily on income-driven repayment (IDR). Trump’s July 2025 tax bill narrowed IDR into a single new program, while also reshaping conventional loans and borrowing limits. Both paths leave borrowers with uncertain…

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