The Biden-Harris administration abruptly rescinded two major student loan forgiveness plans on Monday, halting initiatives that had been central to the outgoing president’s agenda.

BREAKING: Biden administration has officially withdrawn student loan forgiveness plans, per CNBC.

— unusual_whales (@unusual_whales) December 23, 2024

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The reversal comes as President-elect Donald Trump prepares to take office and has pledged to dismantle what he has called unconstitutional student debt relief policies.

President Joe Biden initially announced a sweeping student loan forgiveness plan in August 2022, aimed at alleviating debt burdens for millions of Americans.

The plan was widely seen as an effort to court younger voters ahead of the midterm elections.

However, the initiative faced significant legal challenges, culminating in the Supreme Court striking down the program earlier this year.

In response, Biden introduced several alternative pathways to provide debt relief, but those measures have now been abandoned.

Last week, the Department of Education posted notices in the Federal Register announcing the withdrawal of the proposed plans.

These regulations would have allowed the Education Secretary to cancel student loans for borrowers who had been in repayment for decades or were experiencing financial hardship.

The policies were projected to reduce or eliminate the education debt of millions, but they will no longer move forward.

Democrats pushed student loans to win over young voters and this November, President Trump did overwhelmingly better with young voters. It really backfired for Biden and Harris. @NEWSMAX pic.twitter.com/XmAHvvxEcb

— Mercedes Schlapp (@mercedesschlapp) December 24, 2024

Biden’s decision to retreat from these initiatives coincides with the ongoing transition to the Trump administration.

According to Politico, Trump’s transition team has been actively working on strategies to unwind Biden-era student loan forgiveness policies.

“President-elect Donald Trump is poised to pull the plug on President Joe Biden’s yearslong push to cancel student debt for tens of millions of people as Republicans sweep into power in the coming months,” Politico reported.

Discussions among Trump advisers and allies have reportedly focused on rolling back Biden’s student loan initiatives as a priority in the new administration.

These efforts are expected to take shape swiftly once Trump assumes office.

The timing of Biden’s withdrawal of the forgiveness plans has drawn scrutiny.

Critics argue the initiatives were primarily a political maneuver to gain support from Gen Z and Millennial voters during the 2022 midterms and the 2024 presidential election.

Now, with Biden’s political career winding down, the administration appears to be abandoning the policies.

CNBC reported that the withdrawn proposals could have provided significant relief to borrowers facing financial challenges, including those with decades-old debts.

However, the administration’s notices signal an end to the federal government’s pursuit of these measures.

As the Trump administration prepares to take control, its transition team has signaled a sharp departure from Biden’s approach to student debt relief.

The rescission of Biden’s plans aligns with Trump’s pledge to prioritize fiscal responsibility and to focus on reversing policies that he and his allies have characterized as unconstitutional.

The developments mark a dramatic shift in federal student loan policy as millions of borrowers await further clarity on the future of debt relief efforts under the incoming administration.