The debate over student loan policies has intensified as President Donald Trump's administration considers sweeping changes to the Department of Education.
Borrowers, policymakers and educators are closely watching developments that could affect repayment plans, loan forgiveness programs and the future of federal student aid.
Why It Matters
While fully abolishing the Department of Education would require congressional approval, Trump's recent actions suggest an effort to weaken its functions, raising concerns for student loan borrowers.
What's Trump's View on Student Loans?
Trump has expressed skepticism about student loan forgiveness, criticizing broad debt cancellation as unfair to those who have already paid off their loans. In 2023, Trump said that student loan forgiveness "would have been very unfair to the millions and millions of people who have paid their debt through hard work and diligence."
Is Trump Planning to Abolish the Department of Education?
Trump has repeatedly stated his desire to eliminate the Department of Education, arguing that education decisions should be made at the state and local levels rather than by the federal government.
While completely abolishing the department would require congressional approval, his administration has already taken steps to reduce its influence. Some reports indicate that an executive order may soon be issued to significantly downsize its operations or transfer certain responsibilities to other agencies. However, opposition from Congress and legal challenges could complicate these efforts.
What To Know
Borrowers looking to navigate the potential changes have several options. U.S. News & World Report recommends strategies such as enrolling in income-driven repayment plans, consolidating multiple loans or making extra payments toward the principal to accelerate debt payoff. Additionally, student loan refinancing remains a viable option for those with strong credit and stable income.
Public Service Loan Forgiveness (PSLF), which allows certain borrowers to have loans forgiven after 10 years of qualifying payments, could also face disruptions.
How Might Student Loans Be Impacted if the Department of Education Is Dissolved?
If the Department of Education were to be dismantled or significantly reduced, federal student loan programs could be disrupted. The department is responsible for managing loan servicing, processing income-driven repayment plans and overseeing forgiveness programs.
Without a clear alternative structure in place, borrowers may experience delays in payments, difficulties accessing account information and uncertainty regarding loan forgiveness. Experts warn that without federal oversight, student loan protections could weaken, leaving borrowers more vulnerable to predatory lending practices.
What People Are Saying
Experts have voiced concerns over potential disruptions.
California Representative Ro Khanna posted on X (formerly Twitter) on Tuesday: "NBC is reporting that Trump will eliminate the Department of Education with an executive order. This is an assault on America's children."
Elon Musk posted to X on Tuesday: "Massive increase in spending after the Department of Education was created with no actual improvement in education!"
Texas Congressman Brandon Gill, a Republican, posted on X on January 28: "Working class taxpayers shouldn't have to foot the bill for woke degrees that don't provide any value to the economy. We need to cut funding for federally subsidized student loans and fix our broken education system."
One Reddit user by the name u/Doriciktus posted on Tuesday: "I make my payments every month but it feels like my balance barely moves. Interest keeps stacking up and sometimes I wonder if I'll ever actually be debt-free. It's like I signed up for a lifetime subscription to Sallie Mae. Has anyone actually paid theirs off? If so, how? I need some hope."
How Do You Get Rid of Student Loans?
For borrowers looking to eliminate student loan debt, there are several strategies available.
Enrolling in income-driven repayment plans can reduce monthly payments and lead to forgiveness after a set number of years. Public Service Loan Forgiveness offers relief for those working in qualifying nonprofit or government positions.
Additionally, refinancing with a private lender at a lower interest rate may be an option for those with strong credit and stable income. Some borrowers may also qualify for teacher loan forgiveness, borrower defense programs or total and permanent disability discharge. Understanding these options is crucial to making informed financial decisions.
What Happens Next
The full extent of Trump's plans remains unclear, but borrowers can take proactive steps to protect themselves. Forbes advises borrowers to take screenshots of their student loan dashboard on StudentAid.gov, download key financial documents and certify their PSLF employment status to ensure they have records in case of website takedowns or data loss.
English (US) ·