On Thursday, March 20, US President Donald Trump signed Executive order with the intention of Eliminate the Federal Ministry of Education and “Return Over Education” of states and local self -government.
One critical function of the department is the administration of federal student financial assistance such as grants and student loans. If the Ministry of Education is closed, which means that for a free application for federal student aid, or FAFSA?
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In comments to reporters Thursday, Press Secretary Said Carolyn Levitt That, “when it comes to student loans and grants for Pell, they will still be expired from the Ministry of Education.” The next day, Trump reduced those plans, posting that the small business administration will take over the student loan administration.
White House actions have already weakened the Ministry of Education – on March 11, Agency's staff was reduced by almost halfAnd Students The web site has dropped for hours.
“These workforce reductions are causing serious issues regarding the future functionality of federal aid programs,” a student loan expert Elaine Rubin said in E -s. “There was little communication on how the department plans to maintain efficient work and prevent disorders.”
If you are concerned about filling in 2025-26 FAFSA – Or you have already submitted it- here's what you need to know.
Does Fafsa leave?
Even if the Ministry of Education is eliminated, experts do not think that federal student aid or FAFSA will disappear.
“Software System and Call Center are through contractors, but there is still significant work in the house”, a student loan expert Mark Kantrovitz said in E -s. “After Last year's fiascoStaff interruption can be a disaster. “
Rubin noted that FAFSA is a “activation application” not only for federal financial assistance programs, but also for many state and institutional assistance programs.
“It would be a huge venture to replace FAFSA, but that doesn't mean it can't be at some point,” Rubin said. Since the complex network of programs relies on the application, “we really do not expect FAFSA to leave at this time.”
Where else can FAFSA go?
More than 17 million people finished FAFSA in the 2022-2023 cycle.
Prior to the announcement of Trump on Friday, the most obvious elections for the new FAFSA home were the Ministry of Finance or the Internal Revenue Service, as the FAFSA form is already linked to the IRS system to set up tax return data.
Kantrovitz initially told CNET that the finance ministry would be the most likely destination for student loan programs. Following Trump's announcement on Friday, Kantrovitz noted that the transfer of student loans and FAFSA to the small business administration would still require Congress approval.
He added that no matter who the agency is taking, the federal government must continue to manage and manage student assistance.
“States are not capable of handling student loans,” Kantrovitz said. “Private lenders lack the capacity and appetite for privatization of the Federal Student Loan portfolio.”
If FAFSA moves, said Kantrovitz, borrows may not notice a big difference, depending on who performs the programs.
“Most functions (on student loan programs) are implemented through contractors,” he said. “SBA has no experience in managing and collecting student loans. If they convey the relevant FSA staff and continue to use existing student loan repairers, the disorder should be minimal. Otherwise, there is the potential for significant chaos and borrower confusion.”
Do you still have to submit FAFSA?
If you need a college payment assistance, experts say you should Continue to use FAFSA. The template is used to determine your eligibility for financial aid, including pell grants, scholarships, work programs and student loans.
Rubin noted a group of people who added concerns to fill out FAFSA form: Students who need to report information from a parent or spouse who is an immigrant without documents. Applicants with whom they are non-American citizens with Qualifying documentation may be entitled to financial assistance; The status of financial “associates”, such as parents and spouses, does not affect eligibility.
The Privacy Law of 1974 prohibits the Agency from sharing certain identification information without written consent or explicit agreement. Under Current contractsThe Department shares the information about the FAFSA applicants – but not associates – with the Ministry of Interior Security to confirm the status of the applicant. But the aggressive stance of this administration against immigrants without documents has many families concerned about reporting information that can be illegally shared with immigration authorities, Rubin said.
It has no universal advice for these applicants. “It really has to go down … which is best for the family and what they are comfortable.”
What to expect if you submitted the FAFSA application
If you have already submitted your FAFSA form, the Ministry of Education says it will process your application over the Internet within one to three days (submissions on the paper form lasts longer).
Once your form is processed, you can log in Students To see the submission summary and make corrections. However, in order to reduce staff, you should expect delays if you have any questions or questions with your application, experts warn.
The summary should contain the student aid index, which the Department sends directly to the schools you listed on your FAFSA form. Schools use your time to calculate the amount of financial assistance they will offer. If you are worried that your school has not received your information to determine your financial aid package, contact your school's financial assistance office.