President Donald Trump is set to sign an executive order on Thursday, March 20, that will direct the shutdown of the U.S. Education Department, fulfilling a key campaign promise aimed at dismantling an agency long criticized by conservatives.
Federal student loan payments, as well as funding for students with disabilities under the Individuals with Disabilities Education Act (IDEA) and Title I funding for low-income schools, will remain unchanged under the executive order, reports indicate. Education Secretary Linda McMahon is reportedly developing a plan to streamline funding, “bringing these funds closer to states, localities, and more importantly, students,” according to a White House official.
This major restructuring impacts roughly 43 million Americans who carry some form of student loan debt, totaling an overwhelming $1.5 trillion nationwide. In the weeks leading up to this announcement, Trump has reiterated his commitment to dismantling the education agency, suggesting that the oversight of student loan programs could transition to other federal agencies.
Since Trump took office, the Education Department has already begun laying off employees as part of a broader attempt to reduce its size. Roughly half of the department's workforce is being let go, with many key offices such as the Office for Civil Rights and the Institute of Education Sciences scaling down operations significantly.
Established in 1979, the Department of Education has controlled a significant financial portfolio, managing about $1.6 trillion in federal student loans and distributing billions in federal funding annually to schools. While federal funding represents a mere 14 percent of public school budgets, it is crucial to supplemental programming that aids vulnerable students. Programs such as Title I and the McKinney-Vento program for homeless students rely heavily on this support.
Critics of the executive order warn that its implementation threatens the progress made toward a more equitable education system. The National Parents Union has issued a strong statement against the proposed dismantling of the department, declaring, “This isn’t fixing education. It’s making sure millions of children never get a fair shot. And we’re not about to let that happen without a fight.”
Despite President Trump’s claims that the Education Department is overwhelmed with waste and liberal ideology, he faces substantial challenges in fully dissolving it. Eliminating the agency entirely would necessitate an act of Congress, a difficult hurdle in the current political climate. A recent amendment proposed in the House to close the agency garnered significant opposition, with 60 Republicans voting alongside Democrats against it.
The Education Department has historically been criticized by conservatives, who claim it interferes with state control over education. Nevertheless, proponents of the department argue that it plays an essential role in protecting civil rights and ensuring adequate funding for public schools. Trump has called the agency a “hotbed of radicals, zealots, and Marxists,” yet he has still utilized its powers to push elements of his agenda, including prioritizing investigation into schools that violate his policies on issues like transgender athletes and diversity programs.
Many student loan borrowers are already feeling the consequences of the changes. According to financial literacy instructor Alex Beene, recent developments have led to “the worst-case scenario for student loan borrowers.” He explains that the changes instituted by Trump have resulted in payment hikes for many, with monthly payments now ranging between $500 and $5,000 for some borrowers. Beene notes that initiatives that once provided assistance to borrowers are being cut alongside staffing reductions, leaving for-profit sector borrowers in distress.
Financial analyst Michael Ryan expressed concern about the implications of reduced support for student loan borrowers, stating, “Many payments now don't even cover accruing interest, creating negative amortization where loan balances grow despite regular payments.” He warned that high-balance borrowers without forgiveness options could find themselves trapped in endless cycles of debt if current assistance programs continue to be rolled back.
The plan outlined by the White House does not clearly specify which programs will be maintained or terminated in the agency's dissolution, leaving educators and many families uncertain. McMahon previously assured that her goal was to create “a better functioning Department of Education,” which would ensure that existing programs, including vital financial aid aids like Pell Grants and Title I funding, will continue.
As the dust settles on this controversial plan to close the Department of Education, advocates, educators, and students alike are left facing an uncertain future. Many pundits agree that the attempt to dissolve such a fundamental part of the federal education structure could have lasting and damaging consequences, particularly for those who depend on federal assistance. The sweeping changes thus far signal a swift transformation in how education policy is crafted, ultimately returning greater decision-making powers to the states and possibly undermining the educational opportunities for countless children across the country.
