"President Donald Trump is reportedly set to sign an executive order that could kickstart the process of dismantling the Department of Education," The Independent reports.

... "Even if the Education Department shuts its doors, there is no indication federal student loan programs will disappear — and you’ll still need to repay yours, according to Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators."

"Instead, another agency — such as the Treasury Department — could absorb the department’s $1.7 trillion loan portfolio if it shuts down."

"But such a massive transition could prove disruptive to borrowers, according to McCarthy."

"'It would be an entirely new undertaking for Treasury, and so if that were to happen, it seems really unlikely that untangling all of that and redistributing the work of federal student aid in the student loan servicing space would proceed either quickly or without any disruptions,' McCarthy told The Independent."

"The recent major cuts to the federal workforce could also impact the transition."

"'We’re also concerned about the staffing and whether the proper staff would even be available within the Department of Education to assist in making that transition,' McCarthy added."

... "To prepare for the potential transition, McCarthy says borrowers should update their information with their loan service and get on a feasible repayment plan as soon as possible."

Publication Date: 3/6/2025