No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Tuesday, March 31, 2026
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

$1.6 trillion of student loans are up in the air as Trump moves in on the Department of Education

by TheAdviserMagazine
9 months ago
in Business
Reading Time: 4 mins read
A A
.6 trillion of student loans are up in the air as Trump moves in on the Department of Education
Share on FacebookShare on TwitterShare on LInkedIn



Education Secretary Linda McMahon is expected to move quickly now that the Supreme Court has cleared the way for the Trump administration to continue unwinding her department.

The justices on Monday paused a lower court order that had halted nearly 1,400 layoffs and had called into question the legality of President Donald Trump’s plan to outsource the department’s operations to other agencies.

Now, Trump and McMahon are free to execute the layoffs and break up the department’s work among other federal agencies. Trump had campaigned on closing the department, and McMahon has said the department has one “final mission” to turn over its power to the states.

“The U.S. Department of Education will now deliver on its mandate to restore excellence in American education,” McMahon said Monday in a statement.

Department lawyers have already previewed the next steps in court filings.

What happens with student loans, civil rights cases

Trump and McMahon have acknowledged only Congress has authority to close the Education Department fully, but both have suggested its core functions could be parceled out to different federal agencies.

Among the most important decisions is where to put management of federal student loans, a $1.6 trillion portfolio affecting nearly 43 million borrowers.

Trump in March suggested the Small Business Administration would take on federal student loans, but a June court filing indicated the Treasury Department is expected to take over the work. The Education Department said it had been negotiating a contract with Treasury but paused discussions when the court intervened. That work is now expected to proceed in coming days.

Under a separate arrangement, nine Education Department workers already have been detailed to Treasury, according to a court filing.

The department had also recently struck a deal to outsource the management of several grant programs for workforce training and adult education to the Department of Labor. The Education Department agreed to send $2.6 billion to Labor to oversee grants, which are distributed to states to be passed down to schools and colleges.

Combining workforce training programs at Education and Labor would “provide a coordinated federal education and workforce system,” according to the agreement.

Additional agreements are expected to follow with other agencies. At her Senate confirmation hearing, McMahon suggested that enforcement of the Individuals with Disabilities Education Act could be handled by the Department of Health and Human Services. Civil rights work could be managed by the Justice Department, she said.

Democracy Forward, which represents plaintiffs in the lawsuit, said it will pursue “every legal option” to fight for children. The group’s federal court case is proceeding, but the Supreme Court’s emergency decision means the Education Department is allowed to downsize in the meantime.

“No court in the nation — not even the Supreme Court — has found that what the administration is doing is lawful,” said Skye Perryman, president and CEO of the group, in a statement.

Laying off staff

Trump campaigned on a promise to close the agency, and in March ordered it to be wound down “to the maximum extent appropriate and permitted by law.” McMahon had already started a dramatic downsizing, laying off about 1,400 workers.

Education Department employees targeted by the layoffs have been on paid leave since March, according to a union that represents some of the agency’s staff. The lower court order had prevented the department from fully terminating them, though none had been allowed to return to work, according to the American Federation of Government Employees Local 252. Without the lower court order, the workers would have been terminated in early June.

The absence of those staffers already had caused problems in the office that handles student loans, said Melanie Storey, president and CEO of the National Association of Student Financial Aid Administrators. College financial aid staffers reported delays and breakdowns in federal systems — such as an hours-long outage on StudentAid.gov the day after departmental layoffs. Communication with the Education Department eroded, Storey said.

“It is concerning that the Court is allowing the Trump administration to continue with its planned reduction in force, given what we know about the early impact of those cuts on delivering much-needed financial assistance to students seeking a postsecondary education,” Storey said.

Gutting the Education Department will hinder the government’s ability to enforce civil rights laws, especially for girls, students with disabilities, LGBTQ+ students and students of color, said Gaylynn Burroughs, vice president at the National Women’s Law Center. Laid-off staff in the Office of Civil Rights were handling thousands of cases.

“Without enough staff and resources, students will face more barriers to educational opportunity and have fewer places to turn to when their rights are violated,” Burroughs said in a statement. “This is part of a coordinated plan by the Trump administration to dismantle the federal government and roll back hard-won civil rights protections.”

___

AP education writers Annie Ma and Cheyanne Mumphrey contributed reporting.

___

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.



Source link

Tags: airDepartmenteducationloansmovesStudentTrillionTrump
ShareTweetShare
Previous Post

Analyst warns removing Fed Chair would be ‘nuclear event’ for markets

Next Post

Best Credit Card Processing Companies for Fast Payments

Related Posts

edit post
El Al demands changes to passenger compensation law

El Al demands changes to passenger compensation law

by TheAdviserMagazine
March 31, 2026
0

El Al Israel Airlines Ltd. (TASE:ELAL) has sent an urgent letter to Minister of Transport Miri Regev demanding that...

edit post
IKEA retailer plans 25 new India outlets over five years

IKEA retailer plans 25 new India outlets over five years

by TheAdviserMagazine
March 31, 2026
0

Ingka Group, the largest retailer operating IKEA stores worldwide, plans to expand its physical presence in India over the next...

edit post
Euro Area inflation rises to 2.5% in March (EUR:USD:)

Euro Area inflation rises to 2.5% in March (EUR:USD:)

by TheAdviserMagazine
March 31, 2026
0

Mar 31, 2026, 5:04 AM ETEuro / US Dollar (EUR:USD), GF, EWG, DAX, EWI, EWQ, FGM, USD:EURBy: Manshi Mamtora, CFAFollow...

edit post
Nordstrom’s .25 billion deal to go private is paying off—and don’t expect an IPO anytime soon

Nordstrom’s $6.25 billion deal to go private is paying off—and don’t expect an IPO anytime soon

by TheAdviserMagazine
March 31, 2026
0

When Nordstrom went private last year, the move was seen by industry analysts as a way to let the founding...

edit post
Wall Street rally ahead? Dow futures jump nearly 500 points on Trump’s reported plans to exit Iran war

Wall Street rally ahead? Dow futures jump nearly 500 points on Trump’s reported plans to exit Iran war

by TheAdviserMagazine
March 31, 2026
0

US stock market futures gained sharply on Tuesday, with Dow Jones futures surging more than 465 points after a report...

edit post
FY26 IPO market a disaster as investors lose money in 2 out of 3 issues. Will next year be better?

FY26 IPO market a disaster as investors lose money in 2 out of 3 issues. Will next year be better?

by TheAdviserMagazine
March 31, 2026
0

India's primary market boom has run into a reality check this financial year, with two out of every three IPOs...

Next Post
edit post
Best Credit Card Processing Companies for Fast Payments

Best Credit Card Processing Companies for Fast Payments

edit post
JPMorgan reveals 9 stocks with major problems

JPMorgan reveals 9 stocks with major problems

  • Trending
  • Comments
  • Latest
edit post
Massachusetts loses billions in income after millionaire tax

Massachusetts loses billions in income after millionaire tax

March 24, 2026
edit post
Illinois’ Paid Leave for All Workers Act Takes Effect — Every Employee Now Gets Guaranteed Time Off

Illinois’ Paid Leave for All Workers Act Takes Effect — Every Employee Now Gets Guaranteed Time Off

March 27, 2026
edit post
Virginia Permits ADULT MIGRANT MEN To Attend High School

Virginia Permits ADULT MIGRANT MEN To Attend High School

March 30, 2026
edit post
Publix to Open 5 New Stores by End of April. See Upcoming Locations.

Publix to Open 5 New Stores by End of April. See Upcoming Locations.

March 20, 2026
edit post
Hospitals in This State Routinely Sue Patients Over Unpaid Bills

Hospitals in This State Routinely Sue Patients Over Unpaid Bills

March 27, 2026
edit post
A 58-year-old left NYC for Miami to save on taxes — then retired early thanks to hidden savings. Here’s the math

A 58-year-old left NYC for Miami to save on taxes — then retired early thanks to hidden savings. Here’s the math

March 30, 2026
edit post
7 Things Cruise Lines Don’t Tell You to Bring — But You’ll Pay for If You Forget

7 Things Cruise Lines Don’t Tell You to Bring — But You’ll Pay for If You Forget

0
edit post
This Could Be the Best Real Estate “Buy” of 2026

This Could Be the Best Real Estate “Buy” of 2026

0
edit post
AmEx Platinum Card Will Lose Saks Credit Starting July 1

AmEx Platinum Card Will Lose Saks Credit Starting July 1

0
edit post
The Weekly Notable Startup Funding Report: 3/30/26 – AlleyWatch

The Weekly Notable Startup Funding Report: 3/30/26 – AlleyWatch

0
edit post
Oil Rises and Gold Falls as Markets React to Iran Tensions

Oil Rises and Gold Falls as Markets React to Iran Tensions

0
edit post
El Al demands changes to passenger compensation law

El Al demands changes to passenger compensation law

0
edit post
Warren Buffett says he’s still making calls on investments at Berkshire, flags ‘tiny’ new buy

Warren Buffett says he’s still making calls on investments at Berkshire, flags ‘tiny’ new buy

March 31, 2026
edit post
Linde (LIN): Gase-Riese vor frischen Kaufsignal!

Linde (LIN): Gase-Riese vor frischen Kaufsignal!

March 31, 2026
edit post
El Al demands changes to passenger compensation law

El Al demands changes to passenger compensation law

March 31, 2026
edit post
Walter Williams Against Erasing Confederate History

Walter Williams Against Erasing Confederate History

March 31, 2026
edit post
IKEA retailer plans 25 new India outlets over five years

IKEA retailer plans 25 new India outlets over five years

March 31, 2026
edit post
This Could Be the Best Real Estate “Buy” of 2026

This Could Be the Best Real Estate “Buy” of 2026

March 31, 2026
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Warren Buffett says he’s still making calls on investments at Berkshire, flags ‘tiny’ new buy
  • Linde (LIN): Gase-Riese vor frischen Kaufsignal!
  • El Al demands changes to passenger compensation law
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.