Trump Dismantles Education Dept: Student Loans at Risk

Major Shake-Up in Federal Education Policy

In a sweeping move that has sent shockwaves through education circles, the Trump administration has announced plans to dismantle key components of the U.S. Department of Education. On November 18, 2025, Education Secretary Linda McMahon revealed that critical offices overseeing billions in education funding will be transferred to other federal agencies, marking a pivotal step in fulfilling President Trump's campaign promise to abolish the department entirely.

Background: The Promise to Dismantle

President Trump has long criticized the Department of Education as an ineffective bureaucracy, promising during his campaign to eliminate the agency created in 1979. In March 2025, he signed an executive order seeking its abolition, but congressional approval is unlikely given Democratic opposition in the Senate. Undeterred, Secretary McMahon has vowed to dismantle the department "from within," arguing that "cutting through layers of red tape" will better serve students.

Key Changes: Where Are the Offices Moving?

Under the new interagency agreements, six major education offices will be relocated:

• Office of Elementary and Secondary Education ($28 billion in K-12 grants) → Department of Labor
• Office of Postsecondary Education ($3.1 billion for college completion) → Department of Labor
• Indian Education program → Department of the Interior
• Child care access programs → Department of Health and Human Services
• Foreign-language education → State Department
• Career and technical education → Department of Labor (moved earlier this year)

Notably, the federal student aid program and Office for Civil Rights were not included in this wave but remain under review for future transfers.

Impact on Student Loans: What You Need to Know

While the initial announcement spares direct changes to student loan systems, the administration's clear intent to dismantle the entire department raises significant concerns:

"The Trump administration is exploring options for moving the federal student aid program elsewhere." — Senior Education Department official

Currently, your federal student loans remain under the Education Department's purview. However, future transfers could disrupt loan servicing, repayment plans, and forgiveness programs. Supporters argue moving student aid to agencies like Labor would better align education with workforce development, but critics warn of bureaucratic chaos.

Reactions: Supporters and Critics Clash

The move has ignited fierce debate:

• Supporters: House Education Chair Tim Walberg praised it as "fixing the nation's broken system," arguing states would gain more control.
• Critics: Sen. Patty Murray called it "an outright illegal effort," while NEA President Becky Pringle warned it "hacks away at protections students need." Education advocates note states would actually interact with more agencies, not fewer.

Small rural districts face particular challenges, as David Schuler of AASA (School Superintendents Association) noted: "It's difficult to see how this streamlines operations for low-capacity districts."

What Happens Next?

The administration's strategy is clear: by transferring functions incrementally, they aim to render the Education Department obsolete. While legally dubious (only Congress can abolish it), these interagency agreements allow policy decisions to remain with Education while shifting administration to other agencies. Staffers managing the programs will physically relocate to their new departments.

For students and families, the message is urgent: stay informed. The future of federal student aid hangs in the balance as this unprecedented restructuring unfolds.