How Defunding the Department of Education Could Impact Your Loans

Lately, there’s been a lot of buzz about defunding the U.S. Department of Education (ED), and if you have student loans, you might be wondering—does this mean my loans disappear? Spoiler alert: No, they don’t.

While the ED plays a key role in overseeing federal student loans, it’s not the lender itself. The real impact of defunding the ED would primarily hit K-12 education, not student loan borrowers. Even if the department were dismantled, your student loan obligations wouldn’t magically vanish. Repayment terms would likely shift to another federal agency, such as the Treasury, but the responsibility to pay back your loans remains the same.

It’s also worth noting that defunding a federal department isn’t as simple as flipping a switch. Congress would have to pass legislation, and that’s a long, complex process. Until any official changes happen, everything stays business as usual—your repayment plans, servicer communications, and loan terms remain intact.

So, what should you do? Stay informed, keep an eye on updates from your loan servicer, and don’t panic. Make sure to maintain thorough records of your loan documents, payment history, and any progress toward Public Service Loan Forgiveness. If you have questions or concerns, connect with us. Our expert assistance and tools can help you navigate your options, stay informed about policy changes, and make confident decisions about your repayment strategy.

At the end of the day, no matter what happens in Washington, your best bet is to stay on top of your loans, know your options, and keep moving forward. Log in to your account and explore your options!