President Trump signed Executive order Thursday in an attempt to close the education department.
“We send education to the United States, where he belongs to a large extent,” Linda McMahon, Minister of Education, said in a statement after Mr. Trump signed the matter.
But they are not about to allow the debtors to remove the hook. These states, after all, are not banks, and the Ministry of Education is a large bank in every name. It gives tens of dollars to students and parents every year and supervises a group 1.6 trillion dollars In distinguished loans for more than 40 million borrowers.
The federal government that suffers from debt will not give up this money. So if the Ministry of Education closes, another federal entity will take the loan system. In the short term, any agency inherits the loan portfolio will need to keep employees who collect and track payments.
What may change? Here are some possible answers.
Can the president close the Ministry of Education by executive order?
Maybe not. Congress is needed to close a federal agency, as Mrs. McMahon noticed in the confirmation session.
“This is a political theater, not a dangerous public policy,” said Ted Mitchell, a former education center, who is now the President of the American Education Council, and it is a university membership group.
This may be true or largely – unless the White House closes the administration without the approval of Congress and tries to win the lawsuits that are likely to result. On Thursday, Mr. Trump indicated that he might ask Congress to act.
What if the closure happens anyway – whether by voting in Congress, court ruling, or in another way?
Some other federal entity will need to take on the issuance of debts and collection, Mr. Trump announced on Friday that student loans will move under small business administration.
The Ministry of Education employees can change departments in order to maintain institutional memory on how to operate complex loan programs often and explain their conditions.
What is the chaos can any transfer from my loans end?
Very messy. Debt payment system is complex, with high technical rules, payment plans and many student loan employees who follow and collect payments. Bayers must always maintain their loan records and all previous payments.
Is it possible to delay the disbursement of new loans?
This is possible. Any new supervisor is supposed to make the transition organized and set a date for delivery during a part of the year when many people did not get new loans.
On March 11, the Ministry of Education sent discharge notifications to more than 1,000 employees as part of its efforts to reduce the workforce by half (including people who have already left since Mr. Trump’s inauguration).
Although these demobilization operations are the subject of lawsuits, other employees who have experience in related student loans may have already left or will go out under his own will. It may be difficult for borrowers to obtain a quick solution to many complex issues for an unspecified period to come.
“The claim that eliminating half of the administration will not affect its services – without any clear plan to redistribute the work burden – it is, at best, naive, and in the worst case, deliberately misleading,” said Beth Maggalion, the temporary president of the National Association of Financial Aid officials. “It raises serious concerns about how billions of dollars in the federal student aid continues to be disbursed without interruption.”
Should I continue to pay my student loan payments?
Yes.
My loans were on a temporary stop. What now?
Read every connection from your loan distributor carefully, and follow the instructions to the message. Check the RAM frequently, and achieve dual to ensure that Service has the correct paper mail address. If your service provider no longer will manage your debts, he must teach you months after any key.
Will I be able to obtain federal loans in the future?
If the Ministry of Education is closed, some administration or other entity may become lending.
Republicans have made a long -term target to make private companies deal with students lending, as the federal government was a kind of guarantor of debt.
What will happen to popular programs such as income -based payment, forgiveness of public service loan and Pell?
All these programs are due to laws.
“We must honor these programs.” She also promised to maintain Pell’s grant and said she had supported her expansion.
Therefore, some government entity is supposed to continue to supervise each of them. But Congress may try to change or end any of them.
What other changes may come?
Mr. Trump released Executive In an attempt to prevent borrowers registered in the tolerance program in the public service loan from canceling their loans if they work for organizations, unprocessed from its management.
This includes any entities that support terrorism, “engaging in violence for the purpose of obstructing or influencing the policy of the federal government”, and abuse of children “including chemical or surgical specialization or distortion of children”, “employers participate in a pattern of helping and overcoming illegal discrimination”, and those that violate government torture laws “including laws against irrationality drainage, and wandering in the public.
It is certain that anything sweeping causes lawsuits. It is not clear to what extent will the Ministry of Education try to put any of them in place.
Elon Musk’s allies, who merged themselves at the Education Department headquarters shortly after Mr. Trump’s inauguration, discussed the use of chat groups that support software to replace workers who help answer questions for parents and borrowers.
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