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.
Navigating Announced Changes at the Department of Education
"There are key changes to understand - in addition to President Trump’s executive order calling for the elimination of the U.S. Department of Education," NBC DFW reports.
... "When it comes to the executive order, a president cannot unilaterally abolish a federal agency without the approval of Congress."
"'With respect to the executive order, there are no short-term immediate impacts of that,' said Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators."
"'That executive order is instructing the secretary of education to develop a plan for how the programs and functions that are currently administered by the Department of Education would be handled should Congress eliminate the Department of Education,' Desjean explained."
"In a statement on the Department of Education’s website, Education Secretary Linda McMahon writes, in part, that it would continue to 'support college student borrowers and others who rely on essential programs.'"
"It didn’t include details, but Desjean explained she doesn’t expect student aid programs or federal student loans to see immediate changes for borrowers and students because of the executive order."
"'The Federal Student Aid programs are authorized entirely separately from the existence of the Department of Education. So, there can be a Pell Grant without a Department of Education. There can be a student loan program without the Department of Education,' Desjean said."
"Desjean said borrowers could see an impact from the reduction in workforce at the agency."
"'The question students are having, is the person that was supposed to do x still there? Financial aid administrators have those same questions because we rely on the Department of Education to answer our questions and to get things done,' said Desjean."
... "When it comes to federal student loans, they are still available. The federal government contracts with loan servicers are listed online. Desjean explained borrowers would continue to contact their loan servicers with day-to-day questions."
Publication Date: 3/24/2025
