"The Trump administration has already begun carrying out its plans to close parts or all of the Department of Education, which is responsible for underwriting student loans, disbursing college aid and ensuring equal access to education," CNBC reports.

..."Still, no other agency is equipped to service a $1.6 trillion student loan program, according to Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators.

'It wouldn’t be an easy process to make that transfer,' McCarthy said. 'Our biggest concern is that if something like that were to happen, it wouldn’t go smoothly.'

The process could potentially unsettle millions of current college students, as well as the more than 42 million borrowers with federal student loan debt, she said."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 2/13/2025