No Result
View All Result
  • Login
Tuesday, December 16, 2025
FeeOnlyNews.com
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
No Result
View All Result
FeeOnlyNews.com
No Result
View All Result
Home Business

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

by FeeOnlyNews.com
5 months ago
in Business
Reading Time: 4 mins read
A A
0
.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

5 of the Best Places to Retire in Alaska — and Why You Should Consider the State

Next Post

Best Credit Card Processing Companies for Fast Payments

Related Posts

2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

by FeeOnlyNews.com
December 15, 2025
0

After years of consolidation and post-pandemic recalibration, 2025 emerged as a defining breakout year for India’s real estate sector, marked...

India’s primary market braces for surge of hospital and IVF IPOs next year

India’s primary market braces for surge of hospital and IVF IPOs next year

by FeeOnlyNews.com
December 15, 2025
0

Mumbai: India's primary market is set for a heavy infusion of healthcare companies, including several in-vitro fertilisation (IVF) chains, next...

New York City is officially getting 3 Las Vegas-style casinos

New York City is officially getting 3 Las Vegas-style casinos

by FeeOnlyNews.com
December 15, 2025
0

The New York Mets’ ballpark in Queens. A Bronx golf course once operated by President Donald Trump ’s company. A slot parlor...

Champions Oncology signals expanding radiolabeling and data platform as margin improves to 52% (NASDAQ:CSBR)

Champions Oncology signals expanding radiolabeling and data platform as margin improves to 52% (NASDAQ:CSBR)

by FeeOnlyNews.com
December 15, 2025
0

Earnings Call Insights: Champions Oncology (CSBR) Q2 2026 Management View CEO Robert Brainin stated the company's three core goals for...

AI investment pressures, supply-chain risks, and strategy misalignment are all on the line for CFOs

AI investment pressures, supply-chain risks, and strategy misalignment are all on the line for CFOs

by FeeOnlyNews.com
December 15, 2025
0

The talk is over. In 2026, it’s time to execute.When the CFO Alliance, a finance-professional peer community, released its latest report,...

China steps up price war checks as cars keep getting cheaper

China steps up price war checks as cars keep getting cheaper

by FeeOnlyNews.com
December 15, 2025
0

China's new restrictions on car discounts signal the government is cranking up its scrutiny of excessive competition in the local...

Next Post
Best Credit Card Processing Companies for Fast Payments

Best Credit Card Processing Companies for Fast Payments

JPMorgan reveals 9 stocks with major problems

JPMorgan reveals 9 stocks with major problems

  • Trending
  • Comments
  • Latest
Newsom, DeSantis join forces to blast ‘idiotic’ push to allow oil drilling off coasts of California, Florida

Newsom, DeSantis join forces to blast ‘idiotic’ push to allow oil drilling off coasts of California, Florida

November 23, 2025
Israeli housing rental platform Venn raises m

Israeli housing rental platform Venn raises $52m

November 18, 2025
What is a credit card spending limit — and what to know

What is a credit card spending limit — and what to know

August 4, 2025
Links 12/10/2025 | naked capitalism

Links 12/10/2025 | naked capitalism

December 10, 2025
5 Senior Discounts Being Eliminated by National Retailers

5 Senior Discounts Being Eliminated by National Retailers

December 7, 2025
AT&T promised the government it won’t pursue DEI

AT&T promised the government it won’t pursue DEI

December 4, 2025
AI in Investment Management: From Exuberance to Realism

AI in Investment Management: From Exuberance to Realism

0
Is the Yeedi Robot Vacuum Really Worth It? Here’s What You Should Know

Is the Yeedi Robot Vacuum Really Worth It? Here’s What You Should Know

0
8 spending habits that instantly give away your social class without you realizing it

8 spending habits that instantly give away your social class without you realizing it

0
Unwrap The Gift Of Business Intelligence At The Edge With Observability Insights

Unwrap The Gift Of Business Intelligence At The Edge With Observability Insights

0
Is it Right for Your Trading Strategy?

Is it Right for Your Trading Strategy?

0
2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

0
8 spending habits that instantly give away your social class without you realizing it

8 spending habits that instantly give away your social class without you realizing it

December 16, 2025
Is it Right for Your Trading Strategy?

Is it Right for Your Trading Strategy?

December 15, 2025
2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj

December 15, 2025
Is the Yeedi Robot Vacuum Really Worth It? Here’s What You Should Know

Is the Yeedi Robot Vacuum Really Worth It? Here’s What You Should Know

December 15, 2025
Trump open to reviewing pardon for Samourai Bitcoin app developer

Trump open to reviewing pardon for Samourai Bitcoin app developer

December 15, 2025
India’s primary market braces for surge of hospital and IVF IPOs next year

India’s primary market braces for surge of hospital and IVF IPOs next year

December 15, 2025
FeeOnlyNews.com

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Economy
  • Financial Planning
  • Investing
  • Market Analysis
  • Markets
  • Money
  • Personal Finance
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • 8 spending habits that instantly give away your social class without you realizing it
  • Is it Right for Your Trading Strategy?
  • 2025 was a breakout year for Indian real estate; 2026 looks even stronger: Aman Sarin of Anant Raj
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclaimers
  • About Us
  • Contact Us

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

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
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.