Tuesday, March 04, 2025

DoE May Close in 2 Weeks; Student Loan Programs to Suffer?

President Donald Trump has called for the U.S. Department of Education to be completely eliminated, and he may issue an executive order in the coming days to make that happen. But a formal closure of the department may not be necessary to significantly disrupt key operations, including overseeing federal student loan forgiveness and repayment programs. The Trump administration has already taken major steps to dismantle the department from within, including by placing many employees on leave. More substantial reductions in staffing, funding, and operations appear to be imminent. And with the likelihood increasing of a broader federal government shutdown, the department's activities may be further diminished in just a matter of weeks. Here's what student loan borrowers should know as the Department of Education plunges deeper into crisis.

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Warning: Sorta paywalled. It's the first of my "four free monthly articles."

Comments

Student loan programs to suffer?

Well that's the point. To make anyone outside of the top 10% suffer.

#1 | Posted by Nixon at 2025-03-05 07:23 AM

Well that's the point.

Especially if they allow privatization of the loans. There's nothing to stop them from increasing the interest rates and ending any income-driven repayment programs while keeping the debt in its special status of being non-dischargeable by bankruptcy.

#2 | Posted by jpw at 2025-03-05 08:57 AM

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