What Trump's election means for student debt in California
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Californians collectively owe more than $148 billion in student loan debt.
Why it matters: President-elect Trump could put an end to his predecessor's years-long efforts to erase that financial burden.
The big picture: Trump has repeatedly bashed the Biden administration's student loan forgiveness plans but has not said how he would handle the mounting debt in another White House term.
- The president-elect has also vowed to dismantle the Department of Education, which is the loan holder for most federal student loans.
- The Trump campaign did not immediately respond to Axios' request for information on his plans for the department or student loan relief.
By the numbers: Nearly 3.9 million Californians have student loans — about 10% of the state's population.
- Borrowers owe about $38,000 on average, which is higher than the national average of $36,207, federal data shows.
- One-third of California borrowers have $10,000 or less outstanding. The majority have $20,000 or less in student debt.
The intrigue: While California's college tuition costs are slightly lower than the national average, tuition has been rising at UCSD and SDSU.
Catch up quick: After the conservative-majority Supreme Court blocked Biden's signature student loan forgiveness plan last year, his administration still found ways to deliver relief to some borrowers by circumventing the need for Congressional or court approval.
- Biden used the Department of Education's existing authority to provide more than $168 billion in relief to more than 4.7 million borrowers since 2021.
What to watch: The next Trump administration could roll back the efforts through similar regulatory changes.
- "The future of student loan debt forgiveness may be in jeopardy with an incoming Trump administration, which may be unlikely to appeal rulings in the ongoing lawsuits targeting the SAVE plan and Biden's Plan B," NerdWallet lending expert Kate Wood told Axios.
- On the other hand, Wood said, plans created by Congress, like Public Service Loan Forgiveness, "could be tougher to eliminate but could also be made less accessible."
Zoom out: Republican-led states have sought to undercut Biden's efforts by filing lawsuits to block relief initiatives and income-drive repayment plans like Saving on a Valuable Education (SAVE), which is currently blocked amid a legal battle.
- The president unveiled a new forgiveness plan this spring, which is also facing legal challenges in a GOP-backed push.
Go deeper: Biden's brief win in battle for student loan forgiveness scuttled in court
Editor's note: This story has been updated to clarify tuition is rising at UCSD and SDSU.

