What happens to FAFSA if the Ministry of Education is closed? The experts weigh
President Donald Trump on Thursday followed his threat to “begin to eliminate” the Ministry of Education through an enforcement order, although most legal experts agree with the approval of the Congress, the agency will be required to be discontinued.
A critical function of the department is the administration of the federal student financial assistance such as grants and student loans. If the Ministry of Education is closed, what does this mean for the free federal assistance for a student or Fafsa?
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In more comments in front of reporters on Thursday, press secretary Carolyn Levitt said This, “When it comes to student loans and grants, they will still be exhausted by the Ministry of Education.” However, on March 11, however, The staff of the department was reduced by almost half and Studentaid.gov The website fell for hours.
“These workforce reductions raise serious questions about the future functionality of federal aid programs,” a student loan expert Elaine Rubin said in an email. “There is a little communication about how the department plans to maintain effective operations and prevent interruptions.”
If you are worried about filling out 2025-26 FAFSA “Or you have already sent it- here’s what you need to know.”
Is FAFSA passing?
Even if the Ministry of Education is abolished, experts do not believe that federal assistance to students or fafsa will disappear.
“The software system and the call center are through contractors, but there is still considerable work done internally,” a student loan expert Mark Kantovitz said in an email. “After FAFSA Fiasco last yearTermination of staff can be a disaster. “
Both Rubin and Kantovitz say that managing the FAFSA process can be transferred to another agency.
Rubin noted that FAFSA is the “application for a trigger” not only for federal financial aid programs, but also for many state and institutional assistance programs.
“It would be a huge endeavor to replace FAFSA, but that doesn’t mean it can’t be at one point,” Rubin said. As a complex network of programs relies on the app, “we don’t really intend to disappear at that time.”
Where else can fafsa go?
More than 17 million people finished FAFSA in the 2022-2023 cycle.
Although the White House says student loans will still be managed by the Ministry of Education, this last executive order and reduction of workforce in the agency may mean that the processing of FAFSA is transferred to another federal department.
The opportunities for a new FAFSA Home include the Ministry of Finance or the Internal Revenue Service, as the FAFSA form is already connected to the IRS system for uploading tax return data.
Kantrowitz said the US Department of Finance is the most common destination for student loan programs. He added that no matter which agency accepts it, the federal government should continue to administer and manage the assistance of students.
“States are not able to handle student loans,” Kantovitz said. “Private creditors have no capacity and appetite for privatizing the federal student loan portfolio.”
If FAFSA moved to the Ministry of Finance, Kantrowitz said borrowers would probably not notice much difference.
“Most functions (student loan programs) are performed through contractors,” he said. “The Ministry of Finance has no experience with higher education rules, so there may be some initial chaos.”
Should you still send FAFSA?
If you need help to pay a college, experts say you should Continue using FAFSAS The form is used to determine your eligibility for financial assistance, including PELL grants, scholarships, training programs and student loans.
Rubin noted a group of people who have added concerns about the FAFSA submission: students who have to report information from a parent or spouse who is without documents, an immigrant. Candidates who are not US citizens qualification documentation may be entitled to financial assistance; The condition of financial “associates” as parents and spouses does not affect the admissibility.
Thehe Privacy Law of 1974 prohibits the Agency from sharing a specific identification information without a written consent or an explicit agreement. Under Current AgreementsThe department shares information about FAFSA about candidates – but not associates – with the Ministry of Interior Security to check the status of a candidate. But the aggressive position of this administration against undocumented immigrants has many families who are worried about submitting information that can be shared illegally with immigration authorities, Rubin said.
She has no universal advice for these candidates. “It really has to come to … what is the best for the family and what they are comfortable with.”
What to expect if you have applied your FAFSA application
If you have already sent your FAFSA form, the Ministry of Education says it will process your online application within one to three days (sending on paper forms takes more time).
Once your form is processed, you can enter into Studentaid.gov To see the summary of your submission and make adjustments. However, due to staff cuts, you should expect delays if you have questions or problems with your application, experts have warned.
The summary should include your student assistance index, which the department sends directly to the schools you have listed in your FAFSA form. Schools use your SAI to calculate the amount of financial aid they will offer you. If you are worried that your school has not received your information to determine your financial assistance package, contact your school’s financial aid office.