What Happens to Student Loans if the Education Dept. Closes? - The New York Times
www.nytimes.com
Date posted: May 19, 2025 at 10:48pm
The White House released an executive order instructing the secretary of education to begin shutting down the department -- but not to cancel your debt.
Expanded Summary
The recent executive order from the White House has raised significant concerns about the future of student loans, as it instructs the Secretary of Education to initiate the process of closing down the Department of Education. This drastic measure has left many borrowers questioning the implications for their student debt, particularly since the order does not include provisions for debt cancellation. In this article, we explore the potential outcomes for student loans amidst the dismantling of the department, including the management of existing debts, the impact on federal student loan programs, and what borrowers should be aware of during this uncertain transition. Understanding these elements is crucial for anyone navigating the complexities of student debt in light of this substantial policy shift.
What You’ll Learn
How the closure of the Department of Education could affect your student loans.
The potential changes to federal student loan programs and management.
Important considerations for borrowers during this period of uncertainty.
Why This Matters
The closure of the Department of Education has far-reaching implications for millions of borrowers across the country. Understanding what will happen to student loans in this scenario is essential for individuals who rely on federal assistance to manage their debt. As policies shift, being informed can empower borrowers to take proactive steps to protect their financial futures.
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