President Donald Trump has vowed to dismantle the U.S. Education Department, which oversees federal student financial aid. Reports indicate that members of Elon Musk’s Department of Governmental Efficiency (DOGE) team have accessed financial aid data containing the personal information of millions of students enrolled in the federal student aid program.
This situation may raise concerns for student loan borrowers, but at this time, there is no immediate need to make significant changes to your student loans. Wil Del Pilar, senior vice president at EdTrust, advises that individuals should continue to engage with the current processes and guidelines in place.
Education Department spokesperson Madison Biedermann declined to comment on the alleged access to financial aid data by Musk and DOGE. Instead, she directed BW to an Executive Order that allows DOGE teams to be installed in federal agencies within 30 days.
To protect yourself, it is recommended to download and save all important information related to your student loans from your studentaid.gov account. This includes payment history, loan details, and any progress towards forgiveness programs like PSLF. It is also advised to change passwords and monitor your credit for any unusual activity.
Overall, staying informed and keeping accurate records of your student loan information is crucial in light of these developments. It is important to be proactive in safeguarding your personal and financial data during uncertain times.
Akers mentions that in the past, temporary government workers like Musk and DOGE have been appointed by previous presidential administrations. She expresses no worries about additional security risks to student aid data from DOGE.
“I believe it’s appropriate for government employees to have access to this data,” Akers states.
To stay safe, Del Pilar recommends changing passwords on studentaid.gov and your student loan servicer account, as well as keeping an eye on your credit report and financial accounts for any suspicious activities or credit inquiries. If anything seems off, “I would strongly suggest placing a security freeze or fraud alert on your credit reports,” he advises.
Make payments as usual
If your loans are in good standing, continue making your monthly payments on time and adhere to existing regulations.
Don’t attempt to start a new student loan repayment process as we do not have a defined new process, according to Del Pilar.
Student loan forgiveness programs like PSLF and IDR forgiveness are established by law, requiring an act of Congress to change or eliminate them. Despite Trump’s opposition to loan forgiveness, these programs have historically received bipartisan support. PSLF was signed into law by former President George W. Bush in 2007.
However, Akers suggests that new relief programs introduced by President Joe Biden are likely no longer available. These include the SAVE repayment plan, the temporary PSLF waiver, and the one-time IDR waiver.
“I would recommend reflecting on your initial loan agreement and repayment expectations at that time. That’s likely where we are heading back to,” she explains.
Stay informed and get help if you need it
Your servicer is required to notify you of any concrete changes regarding your student loan status. Ensure that your contact information is up to date in your student loan servicer account.
If you require assistance with your student loans, start by reaching out to your servicer. If that doesn’t resolve your issue, Del Pilar recommends contacting the student loan ombudsman’s office or attorney general in your state.
(In the past, The Consumer Financial Protection Bureau and the Education Department’s student loan ombudsman office were key resources for serious student loan complaints or issues. However, both of these government agencies are currently at risk.)
What’s ahead for the Education Department?
President Trump may issue an Executive Order targeting the Education Department soon. However, he lacks the legal authority to completely abolish the department.
“Closing the department would require Congressional approval, and any executive order to do so would likely be unconstitutional,” Zibel asserts. Shutting down the department could have adverse effects on Pell Grants, federal work-study programs, student loan repayment processes, and students’ ability to obtain loans.
Even if the White House cannot shut down the department entirely, it could still attempt to defund it and hinder its operations, according to Del Pilar.
If the Education Department were to close completely, the government would likely prioritize relocating its Federal Student Aid office to the Treasury Department or the Internal Revenue Service (IRS), Akers suggests.
For now, it’s mostly business as usual with your student loans. Base your financial decisions on current information rather than speculating about potential government actions.
“We cannot predict the administration’s next steps,” Zibel remarks.
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