What's the Future of FAFSA and Financial Aid if the Department of Education Closes?
Published on: 2025-10-02 16:35:00
On Thursday, March 20, US President Donald Trump signed an executive order with the intent to eliminate the federal Department of Education and "return authority over education" to states and local government.
One critical function of the department is the administration of federal student financial aid like grants and student loans. If the Department of Education is closed, what does that mean for the Free Application for Federal Student Aid, or FAFSA?
In comments to reporters Thursday, press secretary Karoline Leavitt said that, "when it comes to student loans and Pell Grants, those will still be run out of the Department of Education." The following day, Trump nixed those plans, announcing that the Small Business Administration would take over administration of student loans.
Actions by the White House have already weakened the Department of Education -- on March 11, agency staffing was slashed by nearly half, and the studentaid.gov website went down for hours.
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