The Department of Education Was Slashed in Half. What Does That Mean for Student Loans?

The Department of Education still exists, but it's about half the size it was yesterday. Amid President Donald Trump's calls to close the agency, the Education Department announced in a statement on Tuesday that it would lay off nearly half of its 4,133 workers, including 600 employees who had already accepted voluntary resignations or retirements. For student loan borrowers, the department will continue to deliver student loans and Pell Grants. However, there will also be staff cuts in every division within the department. "We're still sorting through what areas were impacted but from what I know so far, this will mostly impact borrowers with errors or disputes as it appears most of the 'helpers' were let go," Betsy Mayotte, president of the nonprofit Institute of Student Loan Advisors, said in an email response. Department of Education Secretary Linda McMahon previously said that shutting down the department would require an act of Congress, but she issued a statement last week d ... Read full article.