President Trump has provided student loan relief during the coronavirus crisis but has continuously vetoed legislation that would block efforts to limit debt relief for defrauded student loan borrowers. With his Tax Cuts and Jobs Act of 2017, those who received loan forgiveness through the Total and Permanent Disability Discharge (TPD) program cannot be taxed on the amount they receive, but it also nixed previous tax deductions you could make for certain school expenses like enrollment fees, tuition, textbooks, and more. His 2020 plans include one income-driven repayment plan, which would increase monthly payments from 10 percent to 12.5 percent of a borrower's income, while forgiving what's left of student loans after 15 years instead of 20.
Biden so far has proposed immediately canceling $10,000 of student debt per person in response to the coronavirus crisis, as well as forgiving federal student debt for low-income and middle class individuals who have attended public colleges and universities, in addition to Historically Black Colleges and Universities (HBCUs) and private, underfunded Minority-Serving Institution (MSIs). This would include those who attended public colleges and universities making up to $125,000 with phase-outs depending on salary. Those making $25,000 or less wouldn't be forced to make any monthly payments (or accrue interest on their loan in the meantime), while those earning more than $25,000 wouldn't be forced to pay more than 5 percent their income toward their loans. After 20 years, all remaining loans would be forgiven without tax penalties.