1. Trump Signs Executive Order To Dismantle Education Department

President Trump has signed an executive order to dismantle the Department of Education, aiming to transfer its functions to other federal agencies. This move has raised concerns about the future management of federal student loans, which currently total $1.6 trillion for over 40 million borrowers. The administration plans to shift student loan responsibilities to the Small Business Administration (SBA), a transition that experts warn could lead to confusion and potential harm for borrowers due to the SBA’s lack of experience in this area. Additionally, the SBA’s recent workforce reductions may exacerbate customer service issues, potentially increasing default rates among borrowers.

Key Takeaway: Institutions should prepare for borrower confusion and possible interruptions in loan servicing.

2. What Could Happen To Financial Aid Without The Department Of Education?

President Trump's executive order to dismantle the Department of Education has raised concerns about the future of federal student aid programs. The department currently manages over $1.5 trillion in student debt for more than 40 million borrowers nationwide. The closure requires an act of Congress, which may lead to legal challenges. Trump plans to delegate student loan operations to the Small Business Administration, potentially resulting in slower processing times and increased administrative errors during the transition. Federal programs like Pell grants and subsidized loans cannot be easily eliminated without Congressional approval. Concerns about federal borrowing may drive some towards private loans. Current borrowers are advised to save their information as a precaution.

Quick Insight: Encourage students to back up their loan information now and stay alert for official communications.

3. Education Department Staff Struggle After Mass Layoffs

The Department of Education is undergoing significant workforce reductions as part of President Trump's plan to dismantle the agency. These layoffs have raised concerns about the department's ability to effectively manage federal student aid programs and uphold civil rights protections in educational institutions. The reduction in staff could lead to delays in loan processing and diminished oversight of compliance with federal education laws, impacting both students and educational institutions.

Key Action: Monitor for aid-related processing delays and assess internal compliance workflows.

4. Former Staff Sound Alarm Over Dismantling Of Education Department’s Research Infrastructure

The Trump administration's abrupt dismantling of the Department of Education's Institute of Education Sciences (IES) and its National Center for Education Statistics (NCES) has led to the termination of over 160 educational research contracts and the dismissal of numerous staff members. This sudden action has raised significant concerns among former employees and education professionals about the potential loss of decades' worth of critical data used to inform policy and practice. In response, staff members worked diligently to back up essential datasets to prevent their disappearance. The elimination of these agencies is viewed as a severe setback for educational research and transparency, with critics labeling the move as "breathtakingly irresponsible." The long-term implications for education policy and the availability of reliable data remain uncertain.

Key Takeaway: Prepare for a possible gap in federal data; institutions may need to invest in independent research tools.

5. Columbia University Capitulates Under Federal Pressure

Facing the loss of $400 million in federal research funding, Columbia University has conceded to demands from the Trump administration to alter its policies, particularly those related to diversity, equity, and inclusion (DEI) initiatives. This development is part of a broader strategy by the administration to leverage federal funding to influence university policies nationwide, targeting what conservatives perceive as progressive cultural values in higher education. Columbia's compliance may set a precedent, prompting other institutions to reassess their DEI programs to avoid similar financial repercussions.

Quick Insight: Expect more institutions to reevaluate DEI initiatives in light of potential federal funding risks.

6. Trump Administration’s Crackdown On DEI Raises Concerns

The Trump administration has intensified its scrutiny of diversity, equity, and inclusion (DEI) programs in higher education institutions, leading to investigations and funding cuts. Columbia University, for instance, faced a $400 million reduction in federal research grants due to its DEI initiatives, prompting concerns about academic freedom and the future of such programs. This crackdown reflects a broader effort to reshape university policies, with potential implications for campus climate and the support systems available to underrepresented student populations.

Key Takeaway: Institutions should be ready to defend DEI policies while tracking compliance risks tied to funding.

7. Washington State & Others Brace For Budget Cuts

Facing a historic level of uncertainty, Washington State University is preparing its next budget amidst declining enrollment, anticipated reductions in state aid, and the looming threat of federal cuts under the Trump administration. Executive Vice President Leslie Brunelli described this as the most challenging budget year of her nearly three-decade career, citing concerns over possible disruptions to student aid, research funding, and loan processing due to recent staff cuts at the Department of Education. In response, each of the university’s 44 units has been tasked with modeling budget cuts ranging from 1 to 10 percent, though leadership has promised no across-the-board reductions. Meanwhile, institutions like the University of Houston-Downtown also brace for the potential fallout, with faculty fearing hasty administrative overreactions and long-term damage. The situation echoes past crises like the Great Recession and COVID-19, but without the safety net of federal relief funding.

Quick Insight: Campus leaders should prepare multiple budget scenarios and stay agile as funding clarity evolves.