What's the Future of Student Loans and FAFSA if the Department of Education Goes Under?

Although the Trump administration has reopened income-driven repayment plans for student loan borrowers, the future of federal financial aid remains very much uncertain. On March 20, US President Donald Trump signed an executive order to begin shutting down the federal Department of Education and turning over management of student loans to the Small Business Administration. Trump announced that the SBA would "immediately" begin handling the entire federal student loan portfolio, one day after press secretary Karoline Leavitt told reporters that student loans and Pell Grants would still be run out of the Department of Education. Education Secretary Linda McMahon echoed Trump's sentiments during an interview with CNN on Sunday. "[Student loans] would be going to the Small Business Administration," McMahon said. "There's not going to be any defunding." One critical function of the department is the administration of federal student financial aid like grants and student loans. If the De ... Read full article.