Friday, October 3, 2025

Student Loans Impact

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Introduction to the Department of Education

President Donald Trump has expressed his desire for the new education chief, Linda McMahon, to "put herself out of a job." Since Trump took office, the Education Department has undergone significant changes, including a reduction in staffing by half. The Department of Education announced that over 1,300 career employees were cut, with the goal of reducing the workforce by about 50%.

Impact of Staffing Cuts

The reduction in force reflects the Department of Education’s commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers. All divisions within the DOE will be impacted by the layoffs, with some divisions needing to be reorganized. Eliminating the department altogether would be a cumbersome task, likely requiring an act of Congress.

Role of the Department of Education

The agency’s main role is financial, distributing billions in federal money to colleges and schools and managing the federal student loan portfolio. The Education Department also plays an important regulatory role in services for students, ranging from those with disabilities to low-income and homeless kids. Federal education money is central to Trump’s plans for colleges and schools.

Student Loans and Financial Aid

The Education Department manages approximately $1.5 trillion in student loan debt for over 40 million borrowers. It also oversees the Pell Grant, which provides aid to students below a certain income threshold, and administers the Free Application for Federal Student Aid (FAFSA), which universities use to allocate financial aid. President Joe Biden’s administration made cancellation of student loans a signature effort of the department’s work.

Civil Rights Enforcement

Through its Office for Civil Rights, the Education Department conducts investigations and issues guidance on how civil rights laws should be applied, such as for LGBTQ+ students and students of color. The office also oversees a large data collection project that tracks disparities in resources, course access, and discipline for students of different racial and socioeconomic groups.

College Accreditation

While the Education Department does not directly accredit colleges and universities, it oversees the system by reviewing all federally recognized accrediting agencies. Institutions of higher education must be accredited to gain access to federal money for student financial aid. Accreditation came under scrutiny from conservatives in 2022, when the Southern Association of Colleges and Schools questioned political interference at Florida public colleges and universities.

Money for Schools

Much of the Education Department’s money for K-12 schools goes through large federal programs, such as Title I for low-income schools and the Individuals with Disabilities Education Act. Those programs support services for students with disabilities, lower class sizes with additional teaching positions, and pay for social workers and other non-teaching roles in schools.

Conclusion

The dismantling of the Department of Education has significant implications for students, parents, and teachers. The reduction in staffing and potential elimination of the department altogether raise concerns about the impact on student loans, financial aid, civil rights enforcement, college accreditation, and funding for schools. As the situation continues to unfold, it is essential to stay informed about the potential consequences of these changes.

FAQs

Q: What happens to student loans if the Department of Education is eliminated?
A: The impact on student loans is uncertain, but the Department of Education has stated that it will continue to deliver on all statutory programs, including student loans and Pell Grants.
Q: How will the reduction in staffing affect the Department of Education’s functions?
A: The reduction in staffing will impact all divisions within the DOE, with some divisions needing to be reorganized.
Q: What is the role of the Office for Civil Rights in the Department of Education?
A: The Office for Civil Rights conducts investigations and issues guidance on how civil rights laws should be applied, such as for LGBTQ+ students and students of color.
Q: How does the Department of Education oversee college accreditation?
A: The Department of Education oversees the system by reviewing all federally recognized accrediting agencies, ensuring that institutions of higher education are accredited to gain access to federal money for student financial aid.
Q: What programs will be impacted by the reduction in funding for schools?
A: Programs such as Title I for low-income schools and the Individuals with Disabilities Education Act may be impacted, potentially affecting services for students with disabilities, class sizes, and non-teaching roles in schools.

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