Trump Administration Faces Pressure Amid Department of Education Restructuring

WASHINGTON, D.C. — As the future of the U.S. Department of Education hangs in the balance under President Donald Trump, the agency is facing significant structural changes, including steep staff cuts and a lack of communication, according to current and former employees.

Trump’s administration is managing a financial portfolio of $1.64 trillion in student loans, a complex and contentious issue as he aims to dismantle the department. During a press conference on Thursday, Trump acknowledged the difficulty of balancing his plans to shutter the agency with the necessity of managing a massive loan portfolio. “We’ve actually had that discussion today,” Trump stated, suggesting that management of the loans might shift to other agencies such as the Treasury or Commerce.

The Heritage Foundation‘s Project 2025 has proposed creating a new agency to manage student loans, moving away from direct government lending to a guarantee model underwritten by private entities. “When the federal government lends money to individuals for a postsecondary education, taxpayers should expect those borrowers to repay,” said Lindsey Burke, a Heritage Foundation economist.

Roughly 40% of students with federal loans are currently delinquent, raising concerns about potential defaults as the government resumes payments after an extended pause. “It’s a tidal wave coming for an unprepared village,” warned a former Education Department employee. The looming crisis has prompted the department to hire contractors for increased borrower communication, a move that has met setbacks due to recent layoffs.

The Education Department’s enhanced repayment plans, introduced during the Biden administration, are also in jeopardy. Following legal challenges against the SAVE program, the department has removed applications for income-driven repayment options from its website, effectively locking many borrowers out of necessary adjustments.

Borrowers like Nicolas Salem, who accrued $25,000 in debt while attending Tufts University, face dire situations amid staffing shortages and service backlogs in the department. “I think I’m going to have to move,” Salem stated, citing the financial strain of maintaining payments.

In light of increasing uncertainty, agency officials convened meetings to discuss reinstating certain income-based repayment plans, but challenges persist. “We’ve been told ‘SAVE’ is not coming back in any way, shape, or form,” one staff member revealed.

Concerns extend beyond loan management as the department braces for considerable layoffs, with up to 50% of employees facing termination. Colleen Campbell, FSA’s Executive Director, voiced her apprehension, noting the “impossible environment” in which remaining staff operate.

The fallout from reduced staffing is likely to complicate the department’s ability to manage its multiple roles effectively, raising doubts among experts about long-term impacts on student loan processes. “We’re going to learn whether or not they can do the job with fewer of them,” noted Neal McCluskey, director at the Center for Educational Freedom.

This restructuring of the Education Department comes at a time when the administration is under scrutiny for various policy shifts, including the pushback against federal funding for programs aimed at supporting low-income students.

Pennsylvania State Education Association spokesman Chris Lilienthal criticized the administration’s actions, emphasizing the critical role of federal funding for public education across the state. The implications of dismantling the Department of Education extend beyond finances, threatening protections against discrimination in schools and jeopardizing vital services.

McMahon, newly appointed to lead the department, promised to work alongside Congress to strategize its future but faces skepticism from educators and advocates who fear the consequences of reduced federal support. Underlining the urgency for clarity, Lilienthal remarked, “Dismantling the department is akin to giving up on their future.”