Trump signs order to dismantle Education Department

President Donald Trump signed an executive order on Thursday to begin dismantling the Education Department. This move aims to fulfill a promise he made during his campaign. However, this decision raises questions about the future of federal student loans. The Education Department currently oversees about $1.5 trillion in student loan debt for over 40 million borrowers. With the department possibly closing, there are concerns about where this responsibility will go. Reports indicate that no alternative agency has been found to manage the student debt effectively. White House press secretary Karoline Leavitt mentioned before the order was signed that certain important functions, like student loans and grants for at-risk students, would stay with the Education Department. However, Trump later stated these responsibilities would be moved to other agencies. This shift could complicate matters for Education Secretary Linda McMahon, who must follow laws regarding loans and grants. Trump had previously hinted that the student debt might be transferred to the Treasury Department or the Small Business Administration, but discussions around these plans have stalled. One source noted that the Treasury Department is not interested in taking over the debt management. In contrast, President Joe Biden's administration worked to cancel a significant amount of student debt. Although the Supreme Court blocked one of Biden's attempts, his administration has forgiven over $175 billion for many borrowers through various programs. Trump has criticized Biden's efforts, labeling them illegal and harmful to young people.