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

The Minister of Education, Linda McMahon, is expected to move quickly after the Supreme Court has surveyed the road to the Trump administration to continue to relax its department.
On Monday, the judges stopped the minimum court order, which stopped nearly 1,400 layoffs, and called for questioning the legitimacy of President Donald Trump’s plan to use external sources of the Ministry’s operations to other agencies.
Now, Trump and McMahon liberate the implementation of workers’ demobilization and dismantling the work of management between other federal agencies. Trump carried a campaign to close the department, and McMahon said that the ministry had one “final mission” to hand its authority to the states.
“The US Department of Education will now provide a mandate to restore excellence in American education,” McMahon said on Monday in a statement.
Administration lawyers have already examined the next steps in the court files.
What happens with student loans and civil rights issues
Trump and McMahon only acknowledged that Congress has the authority to close the Ministry of Education completely, but both suggested that their basic functions be extracted into various federal agencies.
Among the most important decisions is the place where the Federal Student Loans Department is placed, a $ 1.6 trillion portfolio, which affects approximately 43 million borrowers.
Trump suggested in March that the small business administration will take over the federal students’ loans, but his file in the June Court indicated that the Treasury is expected to take over. The Ministry of Education said it was negotiating a contract with the treasury, but it stopped temporarily when the court intervened. This work is now expected to continue in the coming days.
Under a separate order, nine workers in the Ministry of Education have already been detailed to the Ministry of Treasury, according to the court report.
The administration recently concluded a deal to use external sources to manage many grants for training on workforce and adult education to the Ministry of Labor. The Ministry of Education has agreed to send $ 2.6 billion to employment to supervise grants, which are distributed to the states that will be transferred to schools and colleges.
The combination of training programs for workforce in education and work would “provide an educational system and coordinated labor force,” according to the agreement.
It is expected to follow additional agreements with other agencies. In the Senate confirmation session, McMahon suggested that the implementation of the Disabled Individual Education law can be dealt with by the Ministry of Health and Humanitarian Services. She said that the Ministry of Justice could be managed by the Ministry of Justice.
The democracy striker, who represents the case, said that she will follow “every legal choice” to fight for children. The case of the group’s federal court continues, but the decision of the Emergency in the Supreme Court means that the Ministry of Education is allowed to reduce its size in the meantime.
“No court in the country – not even the Supreme Court – found that what the administration is doing is legal,” said Sky Periman, President and CEO of the group, in a statement.
Employment of employees
Trump carried a campaign to close the agency, and in March, he ordered it to “to the maximum appropriate extent and allowed by law.” McMahon had already begun to reduce its dramatic size, which led to the demobilization of about 1,400 workers.
The employees of the Ministry of Education targeted the demobilization of workers on a paid vacation since March, according to a union representing some agency employees. The minimum court order has prevented the administration from ending it completely, although no person was allowed to return to work, according to the American Union of local government employees 252. Without the minimum court, workers could have ended in early June.
Melanie Story, president and executive director of the National Association for Assisting Students, said the absence of these employees has already caused problems in the office that undertakes student loans. The college’s financial aid staff reported delay and collapse in federal systems-such as power outages on students. Story said that communication with the Ministry of Education is erosion.
“It is advisable for the court to allow the Trump administration to continue the planned reduction in force, given what we know about the early impact of these cuts on providing financial assistance that affects the need for students who are looking for post -secondary education.”
Giline Buroz, Vice President at the National Center for Women, said that overcoming the Ministry of Education will hinder the government’s ability to implement civil rights laws, especially for girls and students with disabilities, students from LGBTQ+ and colorful students. The employees shown at the Civil Rights Office were dealing with thousands of cases.
“Without enough employees and resources, students will face more barriers in front of educational opportunities and have fewer places to circumvent them when their rights are violated,” Buroz said in a statement. “This is part of a coordinated plan by the Trump administration to dismantle the federal government and a decrease in the protection of civil rights that have achieved hard.”
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AP Eduction Annie MA and Cheyanne Mumphrey have contributed to the reports.
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Associated Press’s education coverage receives financial support from many private institutions. AP is the only one responsible for all content. Find AP standards to work with charitable works, a list of supporters and coverage areas funded in AP.ORG.
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2025-07-14 23:17:00