President Donald Trump has signed an executive order to eliminate the U.S. Department of Education, which he described as a product of 45 years of development. Trump stated that the department would be shut down promptly, with the goal of returning educational responsibilities to the states. This move follows an announcement by the agency to reduce its staff in alignment with the Trump administration’s efforts to streamline federal bureaucracy.
While the Department of Education provides funding to public schools and oversees various educational programs, including student aid and federal student loans, there are concerns about the impact on borrowers. Trump mentioned that student loans may be overseen by a different federal agency in the event of a complete closure of the Education Department.
Education Secretary Linda McMahon has suggested that federal aid programs, such as student loans and grants, could be better managed by another department. Trump acknowledged the need for legislative action to fully dismantle the Education Department and expressed hope that Congress would support the decision.
Regarding student loans, Trump indicated that they could fall under the purview of agencies like the Treasury Department, Commerce Department, or Small Business Administration. The transfer of oversight to the Treasury Department was seen as facilitating a smoother transition due to its existing infrastructure for managing financial information.
In response to concerns about the impact on student loan repayment plans, experts suggested that moving oversight to the Treasury Department could streamline administrative processes. Overall, the restructuring aims to ensure the continuity of essential educational programs while reducing bureaucratic inefficiencies.
The potential addition of 40 million new borrowers is not unexpected, according to experts. While changes in oversight may not impact existing loans, there could be delays in application processing and increased system errors during the transition. It is unlikely that student loans would be divided among multiple organizations, but oversight of other Education Department programs could be reassigned to various agencies. While some groups like Moms for Liberty and Parents Defending Education support the dismantling of the department, others strongly oppose it. Ailen Arreaza, Executive Director of ParentsTogether Action, criticized the move as a direct assault on public education, stating that families would have fewer resources and oversight. Various advocacy organizations representing students, parents, and teachers have denounced the plans to abolish the department.
