The Trump administration is contemplating significant changes to the U.S. Department of Education, including its possible partial or complete elimination. This potential move could have far-reaching consequences for the country's education system, particularly concerning the management of $1.6 trillion in outstanding student debt. Experts caution that such a drastic step would require congressional approval and could exacerbate existing issues within the federal student loan system.
Closing the Education Department would not be a simple task, as it performs critical functions such as underwriting loans that help millions attend college and graduate school annually. Michele Shepard Zampini, senior director of college affordability at The Institute For College Access and Success, highlighted the current challenges facing the student loan system. She warned that any attempts to dismantle the agency could create further instability for borrowers and students alike.
"Borrowers and students need more stability, and this would create chaos," – Michele Shepard Zampini
Transferring the administration of student loans to another agency, such as the Treasury Department, might seem a straightforward solution. However, Betsy Mayotte, president of The Institute of Student Loan Advisors, argued that this could complicate matters further. She noted that moving tens of millions of loan accounts would likely lead to significant delays and disruptions.
"Just because the entity that manages the loan changes, it in no way changes the terms [of the loan]," – Betsy Mayotte
New and current students relying on financial aid may face uncertainties if the Education Department's functions are disrupted. Even if the department were dissolved, existing student loan obligations would remain. Mayotte emphasized the heightened anxiety among borrowers amid these discussions.
"The anxiety levels are pretty high for borrowers right now," – Betsy Mayotte
Polls indicate that the public is largely opposed to this proposed dismantling of the Education Department. According to Data for Progress, only 34% of respondents support the Trump administration's plan, while 61% oppose using an executive order to abolish the agency. The department has faced similar threats in the past, including during former President Ronald Reagan's tenure and again in Trump's first term when a merger with the Labor Department was considered.