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Thursday March 20, American president Donald Trump signed a executive decree with the intention of Eliminate the Federal Ministry of Education and “return authority on education” to local states and governments.
A critical function of the ministry is the administration of federal financial aid for students such as subsidies and student loans. If the Ministry of Education is closed, what does this mean for the free demand for assistance to federal students, or Fafa?
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In comments to journalists Thursday, press secretary Karoline Leavitt said This, “with regard to student loans and Pell subsidies, they will always be short from the Ministry of Education.” The next day, Trump created these plans, announcement That Small Business Administration would take control of the student loans administration.
The actions of the White House have already weakened the Ministry of Education – March 11, Agency staff have been reduced by almost halfand the Studentaid.gov The website has dropped for hours.
“These discounts of the workforce raise serious questions about the future features of federal aid programs,” said the student in student loan Elaine Rubin said in an email. “There has been little communication on how the ministry plans to maintain effective operations and prevent disturbances.”
If you are afraid of filling the 2025-26 FAFSA – Or have already submitted it – here is what you need to know.
Does Fafsa disappear?
Even if the Ministry of Education is eliminated, experts do not think that the federal aid to the students or the FAFSA will disappear.
“The software system and the call center are via entrepreneurs, but there is still an important work done internally,” said the student in student loan Mark Kantrowitz said in an email. “After Fiassco Fafsa from last yearStaff termination could be a disaster. “”
Rubin noted FAFSA is the “request for triggering” not only for federal financial assistance programs, but also for many state and institutional aid programs.
“It would be a huge company to replace the FAFSA, but that does not mean that at some point, it cannot be,” said Rubin. Because a complex network of programs is based on the application, “we do not really plan that FAFSA by disappearing at the moment.”
Where could FAFSA go?
More than 17 million people finished FAFSA during cycle 2022-2023.
Before Trump’s announcement on Friday, the most obvious choices for the new FAFSA house were the Treasury Service or the Rété Service internal, because the FAFSA form is already connected to the IRS system to download data on income declarations.
Kantrowitz initially told CNET that the Treasury Department would be the most likely destination for student loan programs. After Trump’s announcement on Friday, Kantrowitz noted that the transfer of student loans and FAFSA to the Small Business Administration would still require the approval of the Congress.
He added that no matter what agency takes it, the federal government must continue to administer and manage students’ help.
“States are unable to manage student loans,” said Kantrowitz. “Private lenders do not have the capacity and appetite to privatize the federal portfolio of student loans.”
If the FAFSA moves, Kantrowitz said, borrowers may not notice a big difference, according to whom the programs manages.
“Most functions (student loan programs) are implemented through entrepreneurs,” he said. “The SBA lacks experience in the management and collection of student loans. If they transfer the FSA staff concerned and continue to use existing student loan agents, the disturbance should be minimal. Otherwise, there is a significant potential of chaos and confusion among borrowers.”
Should you always submit Fafsa?
If you need help pay for college, experts say you should Continue to use Fafsa. The form is used to determine your eligibility for financial aid, including Pell subsidies, scholarships, work programs and student loans.
Rubin noted a group of people who have additional concerns about the end of the FAFSA form: students who need to report information from a parent or spouse who is an undocumented immigrant. Candidates who are non -American citizens with qualification documentation may be eligible for financial aid; The status of financial “contributors” such as parents and spouses has no impact on eligibility.
THE 1974 privacy law Prohibited for the agency to share certain identification information without written consent or an explicit agreement. Below Current agreementsThe ministry shares FAFSA information for candidates – but not contributors – with the Ministry of Homeland Security to verify the status of a applicant. But the aggressive position of this administration against undocumented immigrants has many families worried to deposit information that could be illegally shared with the immigration authorities, said Rubin.
She has no universal advice for these candidates. “It must really be summed up … which is best for the family and with which they are comfortable.”
What to expect if you have submitted your FAFSA request
If you have already submitted your FAFSA form, the Ministry of Education indicates that it will process your online request in one to three days (paper form submissions take more time).
Once your form has been treated, you can connect to Studentaid.gov To see your submission summary and make corrections. However, due to staff cuts, you should expect delays if you have questions or problems with your request, experts warned.
The summary should include your student assistance index, which the ministry sends directly to the schools you have listed on your FAFSA form. Schools use your SAI to calculate the amount of the financial aid they will offer you. If you are afraid that your school has not received your information to determine your financial assistance package, contact your school’s financial assistance office.
