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Student loans, Pell grants will continue despite Education Department downsizing, expert says

Student loans, Pell grants will continue despite Education Department downsizing, expert says

With President Donald Trump downsize and eventually dismantle Ministry of EducationExperts contacting White House stakeholders assured that the department’s plans, including funding, student loans and civil rights protection, will continue.

“They want to make sure that, especially in areas of high poverty, such as first college schools for disadvantaged students and in the field of civil rights protection in sports, play in education through the federal Department of Education until these burdens, unless these burdens, these responsibilities can transfer other departments to other departments and incorporate them into the establishment of Congress in the interview.

Trump signs A long-awaited executive order canceled the education department Thursday and directed Education Secretary Linda McMahon to initiate the shutdown process and transfer key functions such as the Pell Grant and Title I funds to other federal agencies.

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Trump close-up; Education Building

President Donald Trump vowed during his campaign to eliminate the Department of Education and bring the power of education policy to states. (Getty Image)

Thursday’s order “will be the first step in a long, consistent, labor-intensive process to continue the job of layoffs,” Perry said.

“This is exactly what we’ve seen as the Ministry of Education has done, but it also continues to enforce civil rights and financial aid responsibilities through the federal government until these special obligations are transferred to other institutions,” she said.

Perry said, for example, civil rights enforcement will be transferred to Ministry of Justice Although the student loan process will be handled by the Ministry of Finance.

“They fully understand, it’s nice to hear White House She must work with Congress to unload all responsibilities from other institutions and eventually abandon the Department of Education. ”

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Linda McMahon, left; Trump, right in the photo

President Donald Trump has used Linda McMahon to lead the Department of Education. (Reuters)

Perry said that the initial cuts within the agency have so far been limited to cutting critical racial theories and programs for diversity, equity and inclusion, consistent with other Trump executive orders.

“However, the only two provisions in the Executive Order are taking legal measures to continue to narrow the focus of the agency and continue to enforce civil rights and manage ongoing federal financial plans because these responsibilities cannot remove other agencies without transferring Congressional actions,” she said.

Students who receive student loans or Pell grants at colleges or private schools will continue to receive federal funds as per Trump’s order. Perry said the “misunderstanding” is because schools will be forced to close or raise taxes due to reduced sector sizes, but “federal taxpayer spending actually accounts for less than 10% of each student in the state, so the remaining amount is usually distributed between local and state taxpayers, not federal taxpayers, not federal taxpayers.”

Since its inception in 1979, the Education Department’s budget has increased from about $14 billion in 2024 to about $268 billion, accounting for 4% of total federal spending. Office of Management and Budget.

Before the department was established, federal student loans were managed through the “Guaranteed Student Loan Program” established in 1965 by the Higher Education Act. The program involves loans provided by the federal government to ensure banks and nonprofit loans to students participating in qualified institutions.

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DOE building close-up

The Ministry of Education was established by the Congress Act in 1979. (Erin Scott/Bloomberg via Getty Images)

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Perry said the focus should be on strengthening education at the state and local levels, while ensuring ongoing federal supervision of student loans, civil rights laws and the first funding for poor and low-income students.

“The federal government will therefore always have the responsibility to enforce, apply and interpret and send these special protections and their financial associations,” Perry said.

She suggested that these federal programs could be opened or “split” from the education section, meaning that the role of the department in managing these departments could be reduced or transferred to other institutions.

Trump’s executive order fulfills a major campaign commitment to restore local control over education and return to school options amid the ongoing cultural war.

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