On March 20, President Donald Trump signed an executive order to dismantle the U.S. Department of Education. “It sounds strange, doesn’t it? Department of Education. We’re going to eliminate it,” Trump said at a podium in the White House, surrounded by schoolchildren as he signed the order. The Department of Education, which was officially formed under President Jimmy Carter in 1979, is the federal department tasked with overseeing K-12 funding, enforcing non-discrimination laws, and making sure students with disabilities have access to necessary educational tools. It’s also the department responsible for overseeing federal financial aid for students seeking higher education, leaving many current and future college students wondering what will happen to financial aid if Trump’s executive order is upheld.
And yes, I did say “if.” Realistically, the likelihood that the entire DOE will crumble under Trump is relatively low. That’s because an executive order alone can’t end the DOE — only Congress can abolish an executive agency, and would require a supermajority of 60 senators to vote in favor of it (something that is unlikely with Republicans only having 53 Senate seats, and many Democrats staunchly opposing the dismantling). Plus, there are plenty of people and organizations ready to fight on behalf of the DOE and America’s students, and many have already announced plans to fight him in court over his actions.
That said, Trump can take other actions to severely diminish the department (and already has), even if it’s not fully abolished. So while the DOE’s chances of getting totally eradicated are relatively low, the stakes are still incredibly high for many in this country — including those who rely on financial aid for their higher education.
Financial aid for college students can take a few different forms, including grants, work-study programs, and loans. Many students rely on these forms of financial aid to get them through school — so what could Trump’s attempted dismantling of the DOE mean for each, and what’s the likelihood of this order impacting them? Let’s break it down based on what’s known so far.
Free Application for Federal Student Aid (FAFSA)
The FAFSA is a free form that parents and students can complete in order to be eligible for federal student aid. It works as an umbrella application that encompasses loans, grants, and work-study so that students don’t have to individually apply for each. It asks for demographic and financial information from the student or parents of the student, and determines the student’s eligibility for different forms of aid. Without it, it could be harder and more costly for students to determine their aid eligibility. While it is possible that its functions could be moved to another department, experts say they don’t foresee the FAFSA itself going away anytime soon.
Federal Student Loans
Student loans are one of the most common forms of federal student aid. Each year, 30 to 40% of all undergraduate students take federal student loans, and according to a 2024 study, the average public university student borrows $31,960 to attain a bachelor’s degree. They’re comparable to any type of loan from a bank — you borrow money for college, and after graduation, you start paying it back — but because they’re administered by the DOE, these loans can be uniquely eligible for loan forgiveness if the government should implement it (as was seen under the Biden administration.) And as nice as it might sound, the DOE going away unfortunately would not make your student loan debts disappear — they might just get moved to another department.
On March 21, Trump said he’s decided that the Small Business Administration would likely be taking over student loans. “They are all set for it, they are waiting for it. It’ll be serviced much better than it has in the past,” he told reporters in the White House. However, experts warn that the transition of these responsibilities will likely slow down the processing of new applications and create hiccups for the system.
Reporter: “If the education department were eliminated, what agency would handle student loans?”
Trump: “I don’t think the education should be handling the loans…I think it will be brought into small business.” pic.twitter.com/m0s2MCJFvd
— The Bulwark (@BulwarkOnline) March 6, 2025
Pell Grants and Other Grants
Pell Grants are need-based grants given to undergraduate students who demonstrate exceptional financial need. Pell grants can also be given to qualifying students who are incarcerated and in an approved Prison Education Program. Unlike loans, Pell Grants do not have to be paid back.
Trump did address the future of Pell Grants at the executive order signing, saying that their funding, along with funding for children with disabilities and low-income schools, would be “preserved in full and redistributed to various other agencies and departments.” He did not specify which departments and agencies.
There are other federal grants besides Pell Grants that function similarly in terms of alleviating tuition costs, like Federal Supplemental Educational Opportunity Grants (also for students with exceptional financial need) and grants for students becoming teachers in low-income areas. Trump has not yet addressed what the futures of those grants might look like.
Work-Study
Work-study is another federal financial aid program that connects students with financial need to part-time jobs at their college or university. Unlike other forms of aid, work-study is not meant to be used toward tuition and housing, but to help students cover their daily expenses while at school.
Trump has not yet addressed what will happen to work-study if the DOE is dismantled. However, he did draw criticisms during his first term for proposing to scale the program down significantly, calling it “poorly targeted.”
Current and future college students should continue keeping a close eye on the developments of the DOE to make the best choices for the academic and financial futures.