The Metro: Access to college education via federal loans facing disruption
Trump announced last week that the administration of federal student loans would now be the responsibility of the Small Business Administration instead of the Department of Education.
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Student loan debt is massive in the U.S., totaling $1.7 trillion. There are over 42 million student borrowers with federal loan debt, and the cost of tuition keeps going up.
Since 2010, the cost of attending college has gone up more than 35%. After adjusting for inflation, college tuition has increased nearly 200% since 1963.
Trump promised to dismantle the Department of Education when he was elected, and has since followed through. He cut the department’s workforce in half and signed an executive order to shut it down, saying education should be entirely in control of the states, not the federal government. Last week, Trump announced that the administration of federal student loans would now be the responsibility of the Small Business Administration.
The Department of Education’s primary functions included administering federal student loans and payment plans for college students and graduates, making college accessible for students of all income levels.
Today on The Metro, we talk about recent administrative changes with Michelle Zampini, the senior director of college affordability for The Institute of College Access & Success. The federal financial aid system is raising concerns about potential processing delays, legal challenges, and impacts on access to loans and grants.
The importance of programs like Pell Grants and income-driven repayment plans was emphasized, along with concerns that administrative breakdowns could hinder their availability.
More stories from The Metro on Wednesday, March 26, 2025.
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