No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Monday, May 11, 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
10 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
Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

by TheAdviserMagazine
May 11, 2026
0

In a market already wrestling with elevated crude prices and geopolitical uncertainty, Prime Minister Narendra Modi’s recent public appeals on...

edit post
Forget the Rust Belt or the Sun Belt. The ‘Wired Belt’ may be the next frontier of political power

Forget the Rust Belt or the Sun Belt. The ‘Wired Belt’ may be the next frontier of political power

by TheAdviserMagazine
May 11, 2026
0

The laid-off factory worker from Youngstown, Ohio, became the defining figure of American politics for the past two decades. The...

edit post
AI-fuelled rally keeping global markets resilient despite oil shock, says Ed Yardeni

AI-fuelled rally keeping global markets resilient despite oil shock, says Ed Yardeni

by TheAdviserMagazine
May 11, 2026
0

Global equity markets are continuing to defy geopolitical tensions, elevated crude oil prices, and political uncertainty in the United States....

edit post
Global Market Today: Tech boost lifts Asian stocks as Iran risks push oil higher

Global Market Today: Tech boost lifts Asian stocks as Iran risks push oil higher

by TheAdviserMagazine
May 10, 2026
0

Asian stocks climbed at the open as traders doubled down on the artificial intelligence trade, looking past Middle East tensions...

edit post
The 4% Rule Worked in the Past. Will It Fail the Next Generation of Retirees?

The 4% Rule Worked in the Past. Will It Fail the Next Generation of Retirees?

by TheAdviserMagazine
May 10, 2026
0

For decades, the 4% rule has been one of the most widely cited guidelines in the context of retirement planning....

edit post
Markets dip as US-Iran ceasefire goes nowhere, leaving Trump with a military option to reopen Hormuz

Markets dip as US-Iran ceasefire goes nowhere, leaving Trump with a military option to reopen Hormuz

by TheAdviserMagazine
May 10, 2026
0

Hopes for a peace deal with Iran waned on Sunday, raising the risk that the global energy crisis will drag...

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
Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

May 3, 2026
edit post
Florida Warning: With Senior SNAP Benefits Averaging 8/Month, Thousands Risk Losing Assistance in 2026

Florida Warning: With Senior SNAP Benefits Averaging $188/Month, Thousands Risk Losing Assistance in 2026

April 27, 2026
edit post
Minnesota Wealth Tax | Intangible Personal Property Tax

Minnesota Wealth Tax | Intangible Personal Property Tax

May 6, 2026
edit post
10 Cheapest High Dividend Stocks With P/E Ratios Under 10

10 Cheapest High Dividend Stocks With P/E Ratios Under 10

April 13, 2026
edit post
Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

April 29, 2026
edit post
NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

April 23, 2026
edit post
Study Group sold to Arete Education

Study Group sold to Arete Education

0
edit post
Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

0
edit post
Many New Retirees Still Don’t Understand These Social Security Rules

Many New Retirees Still Don’t Understand These Social Security Rules

0
edit post
The Same Democrats Behind War Crimes ‘R’ Us Are Preparing to Sell You an Imperial Rebrand for 2028

The Same Democrats Behind War Crimes ‘R’ Us Are Preparing to Sell You an Imperial Rebrand for 2028

0
edit post
Megan Greene: Inflation remains above target, geopolitical events exacerbate economic challenges, and the UK faces weak growth amid supply-side issues

Megan Greene: Inflation remains above target, geopolitical events exacerbate economic challenges, and the UK faces weak growth amid supply-side issues

0
edit post
18 Shocking Facts That Prove That The U.S. Economy Is In Far Worse Shape Than Most People Realize

18 Shocking Facts That Prove That The U.S. Economy Is In Far Worse Shape Than Most People Realize

0
edit post
Study Group sold to Arete Education

Study Group sold to Arete Education

May 11, 2026
edit post
The Same Democrats Behind War Crimes ‘R’ Us Are Preparing to Sell You an Imperial Rebrand for 2028

The Same Democrats Behind War Crimes ‘R’ Us Are Preparing to Sell You an Imperial Rebrand for 2028

May 11, 2026
edit post
Megan Greene: Inflation remains above target, geopolitical events exacerbate economic challenges, and the UK faces weak growth amid supply-side issues

Megan Greene: Inflation remains above target, geopolitical events exacerbate economic challenges, and the UK faces weak growth amid supply-side issues

May 11, 2026
edit post
Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

Largecaps seen as safe harbour amid market volatility: Sanjay Mookim

May 11, 2026
edit post
Forget the Rust Belt or the Sun Belt. The ‘Wired Belt’ may be the next frontier of political power

Forget the Rust Belt or the Sun Belt. The ‘Wired Belt’ may be the next frontier of political power

May 11, 2026
edit post
AI-fuelled rally keeping global markets resilient despite oil shock, says Ed Yardeni

AI-fuelled rally keeping global markets resilient despite oil shock, says Ed Yardeni

May 11, 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

  • Study Group sold to Arete Education
  • The Same Democrats Behind War Crimes ‘R’ Us Are Preparing to Sell You an Imperial Rebrand for 2028
  • Megan Greene: Inflation remains above target, geopolitical events exacerbate economic challenges, and the UK faces weak growth amid supply-side issues
  • 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.