President Donald Trump was expected to issue an executive order today to begin the closure of the Education Department, but the White House simply denied the report.
Wall Street Journal looked at a draft of Trump’s executive order, which instructs Education Secretary Linda McMahon to “take all the steps needed to facilitate the closure of the Department of Education” as permitted by law.
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White House press secretary Caroline Leavitt rejected this report in a post on the X social media platform today.
“President Trump is not signing an executive order in the Department of Education today,” she wrote.
McMahon said at her confirmation session last month that the closure of the department would require an act of Congress. But she issued a statement this week telling the department that they have been in charge of “eliminating bureaucratic swelling here in the education department – an important final mission – quickly and responsibly”.
The Department of Education plays a key role in the US education system, but may be better known for administering federal financial aid to millions of student loan borrowers. If you have credit to federal students, here’s what experts say they can be on the horizon if the education department is closed.
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Why does the Trump administration want to eliminate the Education Department?
The Department of Education was established by Congress in 1979 to attend, manage and coordinate education programs and procedures at the federal level. Trump’s advisers have said they want to call for the Congress to abolish the department, an action that has been navigated over the years by Republicans, but has always failed to gain widespread support.
“It is not entirely clear why Republicans want to get rid of the US Education Department,” said student loan expert Mark Kantrowitz in an email. “Why would you get rid of a powerful tool for the implementation of your Education Agenda?”
The Trump administration campaigned to reduce the size of the federal labor force, so the closure of the Education Department, which employs 4,400 people, could be considered part of this agenda. The Department also administers federal student loans, which Republicans have aimed at that when former President Joe Biden greatly supported the relief of student debt.
There may be confusion about the role of the department in public education, including the wrong belief that it controls the K-12 curriculum. The Education Department does not develop a curriculum for any school. Requirements are set at the state level, and local school boards create curricula to meet those requirements.
For example, Common Core, which many think of as “national standards” for education, was created as a multistate effort by the National Association of Governors and the Council of Main Schools of State to standardize education requirements across the country. However, the Department of Education was not included in the development of standards.
Can the President close the Department of Education?
The President cannot unilaterally eliminate the Department of Education because it was created by an act of Congress, which has the power to abolish it. Congress is unlikely to eliminate the department as Republicans control only 53 votes in the Senate, and a 60 -votes supermails are required.
However, while the closure of the Education Department may be out of control of the President, the Trump administration has begun taking action to end specific functions and programs. Billionaire Elon Musk’s Doge’s team has already begun to destroy the department, completing contracts and firing staff.
Congress can also reduce the department budget through budget reconciliation, which requires only a simple majority. “Proposals to get rid of Plus Credit, Student Credit Interest Discounts, [American Opportunity Tax Credit], [Lifetime Learning Credit]Protecting the borrower for settlement, closed school downloads and PSLF aspects can be made through budget reconciliation, “Kantrowitz said.
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HAPPENSE What happens with student loans if the Department of Education is eliminated?
If the Department of Education is completely eliminated, many of its programs, including federal student loans, are likely to remain in some form and move to various departments.
“Some have argued that this responsibility must fall under the treasury, given that federal student loans are funded by the treasure,” said Elaine Rubin, a student loan policy expert and Edvisors Communications Director in an email.
But any change will take time and can ruin millions of borrowers trying to apply or pay student loans. “The treasure lacks experience with the rules of higher education, so there can be some chaos,” Kantrowitz said.
Wherever student loans are completed, current borrowers should expect the same terms they agreed to when accepting the loan.
“If student loans were to be transferred to another federal agency, interest rates and credit conditions would not change.
What about the pardon of the student loan?
President Trump has made it clear that he is not in favor of extensive student loan pardon programs, calling efforts to facilitate the student loan of administration “a total disaster” during a presidential debate last year.
However, during her confirmation session for the Secretary of Education, McMahon told the Senators that the Department of Education would honor the student loan pardon program and other pardon programs that Congress created.
According to Kantrowitz, the elimination of the department will also not affect borrowers whose loans have already been pardoned. “The president cannot capture apologies that has already been secured. It is legally binding,” he said. Courts also say that forgiveness has an ‘irreversible’ impact. “
Savings of administration biden in a valuable educational plan, which had reduced monthly payments and offered additional pardon opportunities, was overturned by a US Court of Appeal ruling last month. The saving was already in the fragmentation block, and the Trump administration is not expected to defend the plan.
The Education Department recently closed applications for all revenue -driven repayment plans, leaving student loan borrowers in limbo and with limited opportunities for lower payment plans.
Read more: You may not be forced to pay pardoned students’ loans – unless it happens
What to do if you have student loans
For most current borrowers, the impact of the department’s elimination may not be visible immediately. “Most functions are implemented through contractors, so student loan borrowers are unlikely to notice anything else,” Kantrowitz said.
Right now, borrowers holding student loans must remain adjusted for updates and prepare to resume payments if they have been paused. Make sure you know who your credit servant is and that they have your current contact information. If you are registered in the storage plan, expect to pay more this year. You can use the Department of Education loan imitator to calculate your new payment and consider other options and savings strategies.
If you are registered in PSLF and close to the 120-pay sign, you may want to consider the application for PSLF purchase program. This allows you to “buy back” months free of charge do not count on remission while your loans were in patience or delay. Although the PSLF program may still be safe, the purchase program can be removed, so now is the time to benefit.