{"id":23951,"date":"2025-03-12T23:27:05","date_gmt":"2025-03-12T23:27:05","guid":{"rendered":"https:\/\/usdailys.com\/?p=23951"},"modified":"2025-03-12T23:27:05","modified_gmt":"2025-03-12T23:27:05","slug":"education-department-eliminates-1300-jobs-how-will-changes-affect-student-loans","status":"publish","type":"post","link":"https:\/\/usdailys.com\/?p=23951","title":{"rendered":"Education Department Eliminates 1,300 Jobs. How Will Changes Affect Student Loans?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"article-subheading text-body-100\">The layoffs come days after President Donald Trump said it&#8217;s not the agency&#8217;s &#8220;business&#8221; to handle the loans<\/p>\n<ul id=\"mntl-sc-block_1-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">\n<li><strong>The Education Department fired 1,300 employees concerning critics who have blasted the decision&#8217;s possible effect on student loan holders and other Americans<\/strong><\/li>\n<li><strong>Linda McMahon, the agency&#8217;s secretary, called the move &#8220;a significant step toward restoring the greatness of the United States education system&#8221;<\/strong><\/li>\n<li><strong>On March 6, President Donald Trump told reporters the department should not be in the business of &#8220;handling&#8221; student loans<\/strong><\/li>\n<\/ul>\n<div id=\"mntl-sc-block_2-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_3-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">The Department of Education is implementing mass layoffs just days after President\u00a0<a href=\"https:\/\/people.com\/tag\/donald-trump\/\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">Donald Trump<\/a>\u00a0suggested the agency should not handle student loans.<\/p>\n<div id=\"mntl-sc-block_4-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_5-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">On Tuesday, March 11, the Department of Education announced plans to\u00a0<a href=\"https:\/\/www.ed.gov\/about\/news\/press-release\/us-department-of-education-initiates-reduction-force\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">lay off 1,300 employees<\/a>, \u201cimpacting nearly 50% of the Department\u2019s workforce.\u201d<\/p>\n<div id=\"mntl-sc-block_6-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_7-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">Secretary of Education Linda McMahon called the move \u201ca significant step toward restoring the greatness of the United States education system.\u201d<\/p>\n<div id=\"mntl-sc-block_8-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_9-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">\u201cToday\u2019s reduction in force reflects the Department of Education\u2019s commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers,\u201d she added.<\/p>\n<p id=\"mntl-sc-block_13-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">Critics have denounced the decision. Sen. Patty Murphy, a Democrat from Washington, claimed\u00a0<a href=\"https:\/\/www.murray.senate.gov\/senator-murray-on-trump-decimating-the-department-of-education\/\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">in a statement<\/a>\u00a0that Trump and his allies are \u201crobbing our students and teachers of the resources and support they need, so that Republicans can pay for more massive tax cuts for billionaires.\u201d<\/p>\n<div id=\"mntl-sc-block_14-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_15-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">In a separate statement, Sen. Tammy Duckworth, a Democrat from Illinois, said that a &#8220;chainsaw&#8221; has been taken to the department&#8217;s workforce, allowing Trump and\u00a0<a href=\"https:\/\/people.com\/tag\/elon-musk\/\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">Elon Musk<\/a>\u00a0to jeopardize &#8220;critical support for teachers, loan assistance for student borrowers and the promise of a quality education for our kids\u2014especially those with disabilities and those living in low-income areas.&#8221;<\/p>\n<div id=\"mntl-sc-block_16-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<figure id=\"mntl-sc-block_17-0\" class=\"comp mntl-sc-block people-sc-block-image mntl-sc-block-image mntl-sc-block-image--no-theme no-theme figure-landscape figure-high-res\">\n<div class=\"figure-media\">\n<div class=\"img-placeholder\"><img loading=\"lazy\" decoding=\"async\" id=\"mntl-sc-block-image_1-0\" class=\"mntl-image mntl-image universal-image__image lazyloadwait lazyloaded\" src=\"https:\/\/people.com\/thmb\/B8sk6lVf9QjLLh0uva57umuifW4=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/us-department-of-education-031225-1-de50e3f07fea4dcaacb92c3d4acaa070.jpg\" sizes=\"auto, 4000px\" srcset=\"https:\/\/people.com\/thmb\/B8sk6lVf9QjLLh0uva57umuifW4=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/us-department-of-education-031225-1-de50e3f07fea4dcaacb92c3d4acaa070.jpg 4000w\" alt=\"The US Department of Education headquarters in Washington, DC, US, on Wednesday, March 12, 2025\" width=\"1500\" height=\"1000\" data-src=\"https:\/\/people.com\/thmb\/B8sk6lVf9QjLLh0uva57umuifW4=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/us-department-of-education-031225-1-de50e3f07fea4dcaacb92c3d4acaa070.jpg\" data-srcset=\"https:\/\/people.com\/thmb\/B8sk6lVf9QjLLh0uva57umuifW4=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/us-department-of-education-031225-1-de50e3f07fea4dcaacb92c3d4acaa070.jpg 4000w\" data-sizes=\"4000px\" data-expand=\"300\" data-tracking-container=\"true\" data-img-lightbox=\"true\" data-click-tracked=\"true\" \/><\/div>\n<\/div><figcaption id=\"mntl-figure-caption_1-0\" class=\"comp mntl-figure-caption text-utility-100 figure-article-caption\"><span class=\"figure-article-caption-text\">The US Department of Education headquarters in Washington, DC, US, on Wednesday, March 12, 2025.<\/span>Al Drago\/Bloomberg via Getty<\/p>\n<\/figcaption><\/figure>\n<p id=\"mntl-sc-block_20-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">If the Department of Education is eliminated, another agency would be tasked with taking over the handling of federal student loans. In addition to the SBA, the Treasury and Commerce departments have also been floated as agencies that could possibly take on the responsibility.<\/p>\n<div id=\"mntl-sc-block_21-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_22-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">\u201cFor a lot of the student loan repayment plans, you need income verification,\u201d said Andrew Gillen, research fellow at the Cato Institute for Economic Freedom,\u00a0<em><a href=\"https:\/\/www.usatoday.com\/story\/money\/2025\/03\/10\/student-loans-if-trump-eliminates-education-department\/82229239007\/\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">USA Today<\/a>\u00a0<\/em>reported<em>. &#8220;<\/em>Treasury already has that. So just from an administrative perspective, Treasury already has a lot of information that is necessary to implement the student loan programs.\u201d<\/p>\n<div id=\"mntl-sc-block_23-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_24-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">But the agency&#8217;s closure would likely &#8220;create chaos&#8221; among borrowers, said Michele Shepard Zampini, senior director of college affordability at The Institute For College Access and Success, to\u00a0<a href=\"https:\/\/www.cnbc.com\/2025\/02\/04\/trumps-moves-to-abolish-education-dept-imperil-student-loan-programs.html\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">CNBC<\/a>. She pointed out that new and current students dependent on financial aid would experience delays.<\/p>\n<div id=\"mntl-sc-block_25-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_26-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">Mark Kantrowitz, a higher education expert, also told the outlet that federal student aid might not be available &#8220;for weeks or longer&#8221; if the department is eliminated. \u201cDisruption is bad, very bad,\u201d he said.<\/p>\n<div id=\"mntl-sc-block_27-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_28-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">The move comes five days after Trump, 78, told reporters in the Oval Office that he had discussed moving the Federal Student Aid office to another agency, such as the Small Business Administration.<\/p>\n<div id=\"mntl-sc-block_29-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<figure id=\"mntl-sc-block_30-0\" class=\"comp mntl-sc-block people-sc-block-image mntl-sc-block-image mntl-sc-block-image--no-theme no-theme figure-landscape figure-high-res\">\n<div class=\"figure-media\">\n<div class=\"img-placeholder\"><img loading=\"lazy\" decoding=\"async\" id=\"mntl-sc-block-image_2-0\" class=\"mntl-image mntl-image universal-image__image lazyloadwait lazyloaded\" src=\"https:\/\/people.com\/thmb\/OVyW3wPGkJ1dRykR_8yNXcGm-tc=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(753x318:755x320):format(webp)\/donald-trump-shut-up-about-egg-prices-031125-5fedea9793b24175a12ddc5db2984d82.jpg\" sizes=\"auto, 4000px\" srcset=\"https:\/\/people.com\/thmb\/OVyW3wPGkJ1dRykR_8yNXcGm-tc=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(753x318:755x320):format(webp)\/donald-trump-shut-up-about-egg-prices-031125-5fedea9793b24175a12ddc5db2984d82.jpg 4000w\" alt=\"Donald Trump on March 7, 2025\" width=\"1500\" height=\"1000\" data-src=\"https:\/\/people.com\/thmb\/OVyW3wPGkJ1dRykR_8yNXcGm-tc=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(753x318:755x320):format(webp)\/donald-trump-shut-up-about-egg-prices-031125-5fedea9793b24175a12ddc5db2984d82.jpg\" data-srcset=\"https:\/\/people.com\/thmb\/OVyW3wPGkJ1dRykR_8yNXcGm-tc=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(753x318:755x320):format(webp)\/donald-trump-shut-up-about-egg-prices-031125-5fedea9793b24175a12ddc5db2984d82.jpg 4000w\" data-sizes=\"4000px\" data-expand=\"300\" data-tracking-container=\"true\" data-img-lightbox=\"true\" data-click-tracked=\"true\" \/><\/div>\n<\/div><figcaption id=\"mntl-figure-caption_2-0\" class=\"comp mntl-figure-caption text-utility-100 figure-article-caption\"><span class=\"figure-article-caption-text\">Donald Trump on March 7, 2025.<\/span>Anna Moneymaker\/Getty<\/p>\n<p id=\"mntl-sc-block_33-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">The Education Department oversees more than $1.6 trillion in federal student loan debt held by nearly 43 million people, or one in six American adults, according to the\u00a0<a href=\"https:\/\/www.congress.gov\/crs-product\/IF10158\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">Congressional Research Service<\/a>.<\/p>\n<div id=\"mntl-sc-block_34-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_35-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">\u201cI don\u2019t think the Education [Department] should be handling the loans,\u201d Trump said on Thursday, March 6. \u201cThat\u2019s\u00a0<a href=\"https:\/\/www.c-span.org\/program\/white-house-event\/president-trump-signs-executive-orders\/656830\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">not their business<\/a>.\u201d<\/p>\n<div id=\"mntl-sc-block_36-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_37-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">Trump has also suggested his administration could eliminate the department as a whole, telling reporters in February that the department was \u201ca big con job\u201d and that he would \u201clike to close it immediately.\u201d<\/p>\n<div id=\"mntl-sc-block_38-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<figure id=\"mntl-sc-block_39-0\" class=\"comp mntl-sc-block people-sc-block-image mntl-sc-block-image mntl-sc-block-image--no-theme no-theme figure-portrait figure-high-res\">\n<div class=\"figure-media\">\n<div class=\"img-placeholder\"><img loading=\"lazy\" decoding=\"async\" id=\"mntl-sc-block-image_3-0\" class=\"mntl-image mntl-image universal-image__image lazyloadwait lazyloaded\" src=\"https:\/\/people.com\/thmb\/5m6L9G6b25Tk4Z9rI6wPIXcVpoY=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/linda-mcmahon-fox-friends-031225-1-451b746b227c4e0ea3afaaaece2a99d7.jpg\" sizes=\"auto, 4000px\" srcset=\"https:\/\/people.com\/thmb\/5m6L9G6b25Tk4Z9rI6wPIXcVpoY=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/linda-mcmahon-fox-friends-031225-1-451b746b227c4e0ea3afaaaece2a99d7.jpg 4000w\" alt=\"Linda McMahon on March 7, 2025\" width=\"1500\" height=\"2025\" data-src=\"https:\/\/people.com\/thmb\/5m6L9G6b25Tk4Z9rI6wPIXcVpoY=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/linda-mcmahon-fox-friends-031225-1-451b746b227c4e0ea3afaaaece2a99d7.jpg\" data-srcset=\"https:\/\/people.com\/thmb\/5m6L9G6b25Tk4Z9rI6wPIXcVpoY=\/4000x0\/filters:no_upscale():max_bytes(150000):strip_icc():focal(749x0:751x2):format(webp)\/linda-mcmahon-fox-friends-031225-1-451b746b227c4e0ea3afaaaece2a99d7.jpg 4000w\" data-sizes=\"4000px\" data-expand=\"300\" data-tracking-container=\"true\" data-img-lightbox=\"true\" data-click-tracked=\"true\" \/><\/div>\n<\/div><figcaption id=\"mntl-figure-caption_3-0\" class=\"comp mntl-figure-caption text-utility-100 figure-article-caption\"><span class=\"figure-article-caption-text\">Linda McMahon on March 7, 2025.<\/span>Noam Galai\/Getty<\/p>\n<\/figcaption><\/figure>\n<p id=\"mntl-sc-block_40-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">At her confirmation hearing in February, McMahon said closing the department \u201ccertainly does require congressional action.\u201d Still, she insinuated that changes would be made.<\/p>\n<div id=\"mntl-sc-block_41-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_42-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">\u201cWe\u2019d like to make sure that we are presenting a plan that I think our senators could get on board with, and our Congress could get on board with, that would have a better functioning Department of Education,\u201d she told senators, the\u00a0<a href=\"https:\/\/apnews.com\/article\/linda-mcmahon-education-confirmation-hearing-417b1d36f9347b8279798fd311d211dc\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">Associated Press<\/a>\u00a0reported.<\/p>\n<div id=\"mntl-sc-block_43-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_44-0\" class=\"comp mntl-sc-block mntl-sc-block-html\"><strong>Never miss a story \u2014 sign up for\u00a0<a href=\"https:\/\/forms.dotdashmeredith.com\/people-news-inline\" rel=\"nofollow\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">PEOPLE&#8217;s free daily newsletter<\/a>\u00a0to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories.<\/strong><\/p>\n<div id=\"mntl-sc-block_45-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_46-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">The president is planning to sign an order instructing McMahon to begin dismantling the department, according to\u00a0<a href=\"https:\/\/www.cnn.com\/2025\/03\/06\/politics\/trump-education-department-shut-down-order\/index.html\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">CNN<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.nytimes.com\/2025\/03\/06\/us\/politics\/trump-education-department-executive-order.html\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"2\"><em>The New York Times<\/em><\/a>.<\/p>\n<div id=\"mntl-sc-block_47-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_48-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">Speaking with\u00a0<a href=\"https:\/\/www.foxnews.com\/video\/6369901522112\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"externalLink\" data-ordinal=\"1\">Fox News<\/a>\u00a0host Laura Ingraham after Tuesday\u2019s layoff announcement, McMahon confirmed Trump\u2019s plans to shut down the department she currently runs.<\/p>\n<div id=\"mntl-sc-block_49-0\" class=\"comp mntl-sc-block mntl-sc-block-adslot mntl-block\"><\/div>\n<p id=\"mntl-sc-block_50-0\" class=\"comp mntl-sc-block mntl-sc-block-html\">&#8220;His directive to me, clearly, is to shut down the Department of Education,\u201d she explained, adding, \u201cwe know we&#8217;ll have to work with Congress to get that accomplished.\u201d<\/p>\n<p>&nbsp;<\/p>\n<\/figcaption><\/figure>\n<div id=\"mntl-article-meta-dynamic_1-0\" class=\"comp mntl-article-meta-dynamic mntl-article-meta mntl-block pre-content\" data-tracking-container=\"true\">\n<div id=\"people-bylines_1-0\" class=\"comp people-bylines mntl-bylines text-utility-200\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; The layoffs come days after President Donald Trump said it&#8217;s not the agency&#8217;s &#8220;business&#8221; to handle the loans The Education Department fired 1,300 employees concerning critics who have &hellip; <\/p>\n","protected":false},"author":2,"featured_media":23952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/23951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23951"}],"version-history":[{"count":1,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/23951\/revisions"}],"predecessor-version":[{"id":23953,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/posts\/23951\/revisions\/23953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=\/wp\/v2\/media\/23952"}],"wp:attachment":[{"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usdailys.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}