Department of Education Shutdown: How Will It Affect Your Student Loan Repayment?

Department of Education Shutdown How Will It Affect Your Student Loan Repayment

Donald Trump has been the president of the United States for less than two months, and he wants to close the Department of Education.

He believes that the states should be the ones in charge of education again. This proposal was one of the most important parts of his campaign and his intentions for governance until 2025.

This news has not been warmly received by a particular sector since it would require a complete overhaul, which would be a step backward and could lead to educational inequity in various regions of the United States.

There would be a lot of political obstacles to shutting down the Department of Education, but the reality is that Donald Trump is indifferent to those problems. If he continues to push for this, he may make it happen, since this is what he wants.

Although it is still being determined if this order will be approved, many people are already discovering the potential repercussions.

We will now present you with the potential impacts that this educational paradigm may have on the country.

What impact will it have on the school system?

Loans for students

Financial aid notifications could be delayed by a Trump executive order, which would have an impact on students from low-income families.

Applications have already decreased due to previous issues with the FAFSA. You cannot receive a Pell Grant without the FAFSA.

During the 2019-20 school year, 72 percent of students got financial assistance, and 40 percent earned Pell Grants. A delay could lead to fewer people enrolling and possibly modify their intentions for college.

Repaying a loan

You are still responsible for student loans, regardless of whether or not Trump makes changes to the Department of Education. It may have an impact on payments based on income and debt forgiveness.

This is governed by the Higher Education Act, and any modifications must be approved by Congress. Experts are concerned that this will make it much more difficult to pay off loans.

Social Security Payment Jump: Get From $1,600 to $4,018 with These Tips

Schools that are publicly funded

The majority of funding for schools comes from local sources, and the federal government will only provide 13.6% in 2021-2022. States that have a higher number of low-income households will be in a difficult situation if the federal budget is reduced.

States with more money may receive more state funding, while children in the poorest states will have fewer resources.

Experts think that this will result in overcrowded classrooms, reductions in special education, and a level of erosion of student rights that has never been seen before.

IRS Approves $7,800 Refund ā€“ Check Your Eligibility and Apply Now

What actions will states take?

During a conference last Tuesday, Donald Trump made comments that have caused many schools and states to feel anxious and fearful.

According to local Republicans, there is no reason to make up fake scenarios until we have more information.

“Imagine if we were frozen out of billions of dollars from the federal government,” Senator Mary Kunesh stated.

It is uncertain whether Trump will maintain the core operations of the Department of Education, although he has proposed eliminating it and transferring its responsibilities to the states.

Leave a Reply

Your email address will not be published. Required fields are marked *