Incoming-President Donald Trump's second term is expected to have its share of shake-ups. Trump has promised to shut down several government agencies in an effort to reduce wasteful spending, which could have dramatic effects on the way government works. One of the agencies at risk is the United States Department of Education, which oversees and manages federal student loans and various programs that administer them. If the Education Department does go away, federal student loans will likely fall under the purview of a different government agency.

Can Truꦍmp Actually Close the Department of Education?

While it's possible President-elect Trump could dismantle the Department of Education, doing so would necessitate a great deal of effort. Abolishing a government department requires an act of Congress, which means it would likely need bipartisan support.

This also isn’t the first time someone has attempted to put an end to the Department of Education. One of the most recent examples is H.R.899, To terminate the Department of Education, a bill introduced in February 2023 by Representative Thomas Massie (R-KY). Although the U.S. House of Representatives considered the bill, it hasn’t made any progress.

Education Under the Trump Administration

Without a government agency that focuses exclusively on education, what would happen to existing student loans? Unfortunately for borrowers, it’s highly unlikely that the Trump administration would forget (or forgive) these debts altogether. If the Department of Education was dismantled, it's much more likely that an agency like the Department of Justice, Department of Labor, or Treasury Department could be put in charge of student loans. Of course, these a𓆉gencies would likely need additional staff and suppo♏rt in order to take on the new workload.

Borrowers repaying their student loans on 澳洲幸运5开奖号码历史查询:income-driven repayment (IDR) plans are also right to worry about the future. The 澳洲幸运5开奖号码历史查询:Sav🔯ing on a Valuable Education (SAVE) plan is currently paused as we await a decision on its legality from the courts, but there’s a good chance it will be struck down in the coming months. This would leave borrowers choosing from the IDR plans that are left, which may be overhauled or eliminated entirely after Trump takes office.

However, a couple solutions for easing the burden of our student debt crisis have been floated by GOP leaders. For example, ​Representative Mike Lawler (R-NY) introduced the Affordable Loans for Students Act, which would cut interest rates for most federal student loans to 1%.

Another bill, called the 澳洲幸运5开奖号码历史查询:College Cost Reduction Act and introduced by ​Representative Virginia Foxx (R-NC), would double the maximum 澳洲幸运5开奖号码历史查询:Pell Grant award and prevent 澳洲幸运5开奖号码历史查询:interest from capitalizing on student loans. It would also replace all repayment plans with two options—a 澳洲幸运5开奖号码历史查询:standard, 10-year repayment plan and a "repayment assistance plan.”

The Bottom Line

Incoming-President Trump has promised to end the Department of Education, but no one’s certain whether he’ll be able to pull it off. All that borrowers with federal student loans can do right now is wait to see how the situation will play out and which repayment plans will still be available in 2025 and b🍬eyond.