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Home»US News

Student loans, Pell Grants will continue despite Doe’s downsizing, experts say

Artificial IntelligenceBy Artificial IntelligenceMarch 21, 2025 US News No Comments4 Mins Read
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As President Donald Trump moves to shrink and ultimately demolish the Department of Education, experts in contact with White House stakeholders have ensured that the department’s programs, including fundraising, student loans and civil rights protection, will continue.

“They want to compete for equality in education through Title 6, in a way like a Title I school, a high-poor area for the protection of civil rights for girls in sports. Interviews.

Trump signed a long-standing executive order on Thursday, repealing the education division, instructing Secretary of Education Linda McMahon to begin the closure process and transfer key functions, such as Pell Grant and Title I funding, to other federal agencies.

Ministry of Education was significantly dismantled by a new Trump executive order

President Donald Trump has pledged the campaign’s trajectory to remove the Department of Education and bring education policy to the United States. (Getty Images)

Perry said Thursday’s order “will be the first step in a very long, consistent, labor-intensive process where the miniaturization work can continue.”

“This is exactly what the Department of Education has already seen, but it continues to specifically enforce civil rights and financial aid responsibility through the federal government until certain obligations are passed on to other agencies,” she said.

Perry, for example, said civil rights enforcement will be moved to the Department of Justice, while the student loan process will be handled by the Department of Treasury.

“They fully understand this and I’m happy to hear that the White House must work with Congress to take full responsibility for other agencies and work together to unlock the Department of Education in the end,” she added.

An injunction released by Trump’s executive order reduces federal support

President Donald Trump is leading the Department of Education by tapping Linda McMahon. (Reuters)

Perry said the first cuts so far within the agency are narrowly focusing on cutting key racial theories and diversity, equity and inclusion initiatives, in line with other executive orders from Trump.

“But two provisions in the executive order are to continue focusing on agencies, enforcing civil rights, and implementing legal action to continue administering ongoing federal financial programs, as they cannot be offloaded to other agencies without changing the burden by Congressional actions,” she said.

Students attending colleges and private schools with student loans or Pell grants will continue to receive federal funds under Trump’s orders. Perry has the “misconception” that budget shortages caused by department downsizing force schools to close or raise taxes, but “federal taxpayers spending is actually less than 10% per state student fund, so it is generally split between local and state taxpayers, not federal taxpayers.”

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

Before the creation of the department, federal student loans were administered through a guaranteed student loan program established under the Higher Education Act in 1965. The program included the federal government that guaranteed loans provided by banks and non-profit lenders to students attending eligible institutions.

School Choice Activists Warn Parents About Blue State Homeschool Bills with prison clauses

The Department of Education was established by the Congressional Act in 1979 (Erinscott/Bloomberg by Getty Images)

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Perry said the focus should be on strengthening education at the state and local levels, and that it should ensure that student loans, civil rights laws and ongoing federal oversight of funding for disadvantaged, low-income students.

“The federal government will therefore always be responsible for enforcing, applying, interpreting and sending these specific protections and their financial associations,” Perry said.

She suggested that these federal programs could be separated or “sold” from the Department of Education. That is, the role of departments in their management can be reduced or transferred to other institutions.

Trump’s executive order fulfills the promise of a major campaign, aiming to restore regional control of education and backschool choice amid the ongoing culture war.

Jamie Joseph is a US political reporter for Fox News Digital, covering transgender and cultural issues, the departments of education, health and welfare, and state legislative development.

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