Is Trump Shutting Down the Department of Education? The White House Says No — at Least Not Today
President Donald Trump will issue an executive order today to start closure of the Department of Education, but the White House has only denied the report.
The Wall Street Journal looked at Trump’s draft executive order that directed Education Secretary Linda McMahon to “take all the necessary steps to promote the education sector to close the education sector.”
Tax transactions this week
The transaction was selected by the CNET Group business team and may not be related to this article.
White House Press Secretary Karoline Leavitt in a copy postal x on social media platforms today.
“President Trump did not sign an executive order with the Department of Education today,” she wrote.
McMahon said at a confirmation hearing last month that closure of departments would require a Congressional bill. But she sent it statement The department was told this week that their mission was to “an eliminating the expansion of bureaucracy in the Ministry of Education – a quick and responsible ultimate task.”
The Department of Education plays a key role in the U.S. education system, but may be known for managing millions of federal financial aid Student Loan Borrower. If you have federal student loans, experts say it may appear if the Department of Education is closed.
Read more: Is saving just a final blow? What the latest court decision means for student loan borrowers
Why does the Trump administration eliminate the Ministry of Education?
The Department of Education was established by Congress in 1979 to track, manage and coordinate education programs and procedures at the federal level. Trump advisers said they wanted to call on Congress to abolish the division, a move that has surfaced among Republicans for years but has not gained widespread support.
“It is not clear why the Republicans are getting rid of the U.S. Department of Education,” student loan experts said. Mark Cantrovitz said in an email. “Why get rid of the powerful tools of implementing the education agenda?”
The Trump administration campaign aims to reduce the size of the federal workforce, so closing the Education Department, which employs 4,400 employees, can be seen as part of the agenda. The ministry also manages federal student loans, Republicans’ goals As former President Joe Biden strongly supports student debt relief.
The role of the department in public education may also be confusing, including the mistaken belief that it controls the K-12 curriculum. The Ministry of Education will not develop courses for any school. Required to be set at the state level, and local school boards create courses to meet these requirements.
For example, Common CoreMany people think this is the “national standard” of education, created by the National Association of Governors and the Chief State School Officials Committee as a multinational effort to standardize educational requirements nationwide. However, the Ministry of Education has not participated in the formulation of standards.
Can the president close the Ministry of Education?
The president cannot unilaterally eliminate the Department of Education because it was created by the Congress bill and Congress has the right to repeal it. Congress is unlikely to eliminate the department, as Republicans control only 53 votes in the Senate, requiring super joy of 60 votes.
But while the complete shutdown of the Education Department may not be outside the president’s terms of reference, the Trump administration has begun to take action to end specific functions and plans. Billionaire Elon Musk’s team of governors has begun to destroy the department, terminate contracts and fire personnel.
Congress can also cut the department’s budget through budget settlements, which requires only a simple majority. “Proposed to get rid of the plus loan, Student loan interest reduction,,,,, (U.S. Opportunity Tax Credit), (Lifetime Learning Credit)Borrower repayment can be carried out through budget settlement, closed school discharge and all aspects of PSLF. ” Kantrowitz said.
Read more: My monthly student loan payments may jump from $0 to $488. This is how I prepare
What happens if the Ministry of Education is cancelled?
If the Department of Education is completely phased out, many of its programs, including federal student loans, may remain in some form and move to different departments.
“Some people think that given that federal student loans are funded by the Treasury, this responsibility should be with the Treasury.” Elaine RubinEdvisors’ student loan policy expert and communications director said in an email.
However, any transformation takes time and can ruin millions of borrowers trying to apply for or repay student loans. “The Treasury lacks experience with higher education rules, so there can be some confusion,” Cantrovitz said.
No matter where the student loan ends up, current borrowers should expect the terms they agree to when accepting the loan.
“If a student loan is transferred to another federal agency, the interest rates and terms of the loan will not change. These terms are specified in the total promissory notes and laws,” Cantrovitz said.
What about student loan forgiveness?
President Trump made it clear that he did not support the widespread student loan forgiveness program, calling the Biden administration’s student loan relief efforts “all disasters” during last year’s presidential debate.
However, at the Secretary of Education confirmation hearing, McMahon told the Senator that the Ministry of Education would respect Public Student Loan Forgiveness Program and other student loan forgiveness programs created by Congress.
According to Cantrovitz, the phase-out of the department will also not affect borrowers of loans that have been forgiven. “The president cannot avoid the forgiveness that has been provided. It is legally binding,” he said. The court also said that forgiveness has an “irreversible” effect.
Biden administration Save valuable educational programsLast month, a U.S. Court of Appeals ruled against monthly payments and offered other options for forgiveness. Savings are already on the chopping block and the Trump administration will not defend the plan.
Recently, the Ministry of Education Closed applications for all income-driven repayment programs For the time being, put student loan borrowers in a difficult situation and offer limited options for lower payment plans.
Read more: You cannot be forced to repay a student loan you forgive – unless this happens
What to do if you have a student loan
For most current borrowers, eliminating the impact of the sector may not be obvious. “Most functions are implemented through contractors, so it’s unlikely that student loan borrowers will notice anything different,” Cantrovitz said.
Currently, borrowers holding student loans should continue to pay attention to updates and prepare for If they pause, please repay. Make sure you know who your loan provider is and that they have your current contact information. If you are joining a savings plan, Expect to pay more this year. You can use Ministry of Education’s loan simulator Calculate your new payment and consider Other options and Save policy.
If you are joining PSLF and are close to a 120 payment trademark, you may want to consider applying PSLF repurchase plan. It allows you to “buy back” unpaid months without accounting for forgiveness when the loan is in a forgiving or deferred situation. While the PSLF plan may still be safe, the repo plan may disappear, so it is time to take advantage of the advantages.
