Student loan policy changes at the federal level are expected to have a major impact on borrowers across the country—including here in Harnett County. With more than 14% of local residents carrying student debt, these changes could affect household budgets, financial futures, and access to opportunity.

What’s Changing?

President Biden’s administration had been working to reduce the burden of student loan debt through plans like the SAVE repayment program, expanded Public Service Loan Forgiveness (PSLF), and fixes to income-driven repayment plans. These programs helped many Harnett County residents lower their monthly payments or qualify for forgiveness.

But under the new administration:

  • Mass forgiveness programs have been halted.
  • Applications for income-based repayment plans are suspended.
  • Borrowers are being shifted to the standard 10-year repayment plan.
  • Collections will restart on May 5, including wage garnishment and tax refund offsets for borrowers in default.

What Does That Mean Locally?

In North Carolina, the average borrower owes about $38,770 in student loans. Under Biden’s SAVE Plan, payments could be as low as $295/month. But under Trump’s plan, monthly payments could rise to around $400-$500/month—or more, depending on the loan amount and repayment terms.

That $100-$200+ increase could put real pressure on Harnett County families, especially given our median household income of just over $69,000. Public service workers may also face new barriers to forgiveness as Trump has restricted eligibility for PSLF based on organization type.

What Can You Do?

  • Review your loan status at StudentAid.gov
  • Use the Loan Simulator to estimate what your new monthly payments might be
  • Talk to your servicer about your repayment options, especially if you're facing financial hardship
  • Be aware of state taxes—North Carolina still taxes forgiven student debt

 

Stay Informed and Speak Up

These changes will affect thousands of people in our community. Let your elected officials know how student debt affects you, your family, or your ability to succeed in Harnett County. Public policy should work for the people—not against them.