.png)
With the U.S. Department of Education facing potential changes under the Trump administration, families across the country are concerned about how their children’s education and financial future may be affected. These changes could reshape the way communities access and afford higher education and student loans.
Why This Matters
During his 2024 campaign, President Donald Trump proposed dismantling the Department of Education and shifting control to individual states. As of January 2024, the department managed $1.5 trillion in federal student loans for nearly 43 million borrowers, making its role crucial for many families.
If the management of the $1.5 trillion student loan portfolio is transferred to the Treasury Department, borrowers might experience changes in loan servicing, repayment options, or customer service.
Key Changes Families Should Know
Disruptions to Student Loan Services
Currently, the Office of Federal Student Aid (FSA) oversees federal student loans, but if the department were abolished, loan management might be transferred to other agencies like the Treasury. Experts warn that past attempts to shift this responsibility have been less effective.
Federal Financial Aid at Risk
The Department of Education provides over $120 billion annually in grants and low-interest loans to approximately 13 million students. While Pell Grants would likely remain, eliminating them—requiring congressional approval—could make college unaffordable for many low-income families.
Shift to Private Loans
If the federal government withdraws from student lending, private lenders may take over, potentially increasing costs and making college less accessible, especially for low-income students.
State Control Over Education Funding
Some argue that states should take on more responsibility for education funding. However, experts warn this could create disparities, as states may lack the resources to effectively manage student loans.
Potential Challenges for Families and Communities
Even if the administration moves forward with dismantling the Department of Education, legal and logistical hurdles remain. Experts predict confusion and instability for families, students, and higher education institutions. The department also plays a role in enforcing civil rights protections and veterans’ programs, adding further uncertainty.
Looking Ahead
With reports suggesting the Trump administration may use executive orders to limit the Department of Education’s authority, families should stay informed and engaged. Access to affordable education is essential for communities, and any changes must consider the long-term impact on students and their futures.
As we navigate these uncertainties, supporting each other and advocating for fair policies will be key to ensuring every child has the opportunity to pursue higher education and a brighter future.
