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Although the Trump management is reopened Pay plans by income The future of federal financial assistance for student credit borrowers remains very uncertain. On March 20, US President signed Donald Trump disposal for Start closing the Federal Education Department and become a small business leadership for student loans management.
Trump, SBA’s “immediate” immediate spokesman announced that the whole federal student loan portfolio will start managing a day after the spokesman Caroline leavitt The speakers said that student loans and Pell grants will still be out of the education department. Education Secretary Linda McMahon, reflected Trump’s views for a while Report with CNN Sunday.
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“[Student loans] He would go to the management of a small business, “said McMahon.” There will be no slander. ”
A critical function of the department is the Federal Student Financial Assistance Administration as grant and student loans. If the education department is closed, what does it mean for free applications for federal student assistance or Fafsa?
The actions of the White House have already weakened the education department – on March 11 Agency workers flickered in about halfand and and Studentaid.gov The website has fallen down for hours.
“This workforce reduction increases serious questions about the future function of federal assistance programs” Student Credit Specialist Elaine Rubin He said in an email. “There was little communication about the department plan to continue the effective operations and prevent violations.”
In addition to managing SBA student loans, it will do it with less resources. The agency has announced on Friday reduce the workforce 43%.
If you are concerned about filling 2025-26 FAFSA – Or already submitted – here’s what you need to know.
FAFSA gets away?
Although the education department is eliminated, experts do not think that federal student assistance or FAFSA will disappear.
“Software system and call center contractors are through, but are still important in the house” Student Credit Specialist Mark Kantrowitz He said in an email. “Then FAFSA FIASCO last yearEmployee cancellation can be a disaster. “
Rubin noted that FAFSA is not only federal financial assistance programs, but also a “trigger application” for many state and institutional assistance.
“It would be a great commitment to replace the FAFSA, but it can’t be in some points,” he said Rubin. Because the programs trust in a complex Internet application, “We don’t really think about it right now.”
Fafsa elsewhere?
More than 17 million people completed the FAFSA during the period 2022-2023.
Prior to the announcement of Trump, the most open choice for the FAFSA’s new home is the Treasury Department or internal income service, because the FAFSA form is already connected to the IRS system to download tax return information.
Kantrowitz first told CNET that the Treasury Department will be the most likely place for student credit programs. After the announcement of Trump, Cantrowitz said he passed the student loans and FAFSA to small business management.
He added that the federal government should continue to manage and manage the federal government aid.
“States are unable to manage student loans,” said Kantrowitz. “Personal lender does not have a capacity and appetite to privatize the federal student loan portfolio.”
If the FAFSA moves, Kantrowitz, borrowers, depending on who employs the program did not matter many differences.
“Most features [of student loan programs] It is carried out through contractors, “he said. SBA has no experience in management and collection of student loans. If they transferred to the relevant FSA workers and continue to use existing student loan services, there should be a minimum. Otherwise, there are potential for confusion between significant chaos and borrowers. “
Should you still send FAFSA?
If you need help to pay for college, experts say you need Continue to use FAFSA. The form is used to determine the eligibility for financial assistance, including pell grants, scholarships, business curricula and student loans.
A group of people who adds their concerns about filling out Rubin Fafsa form: must inform a parent or husband with undocumented immigrants. Applicants who have no US citizens Classification documents may be eligible for financial assistance; Like parents and spouses, financial “contributors” status does not affect compliance.
This 1974 Privacy Law The agency is prohibited from sharing certain data without written consent or an obvious agreement. Bottom Current contractsThe department shares FAFSA data for applicants – but not contributors – with the Department of Homeland Security to check the status of the applicant. However, the aggressive position of this management against undocumented immigrants is concerned about providing information that can be distributed illegally with immigration authorities.
There is no universal recommendation for those applicants. “It’s really the best for the family and what they are comfortable.”
If you have submitted your FAFSA application
If you have submitted the FAFSA form, the education department says you will process your online application within a time (paper form presentations).
You can log in after your form is processed Studentaid.gov To see and make adjustments. However, due to the cutting of personnel, you have to wait for specialists warnings if you have any questions or problems in your application.
Summary should include a student assistance index, where the department sent directly to the schools you are listed directly in the FAFSA. Schools use the SAI to calculate the amount of financial assistance that will offer you. If you are worried, you have not received your information to set your school financial assistance package, contact your school’s Financial Assistance.
