Explaining the Trump Administration’s FAFSA agenda
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As students begin their Free Application for Federal Student Aid, or FAFSA, applications for the 2025-26 academic year, many of President-elect Donald Trump’s political opponents have expressed concerns over the future of the aid program under the incoming administration.
Over the course of the former president’s first four years in the Oval Office and during his most recent campaign, Trump has spoken out against the Department of Education, the government agency responsible for FAFSA. During his second campaign, Trump said the DOE is “indoctrinating young people with inappropriate racial, sexual and political material.”
The president-elect is also a long-standing supporter of local and state-run education policy, advocating for minimal federal influence. However, Trump has not directly called for the elimination of FAFSA, and some predict that he would move the Office of Federal Student Aid into the Treasury Department if his administration successfully eliminates the DOE, Inside Higher Ed reported.
Recent data from the National Center for Education Statistics suggests that 55% of undergraduate students across the country receive federal financial aid. At Syracuse University, over 82% of students receive some form of financial support, according to SU’s Office of Admissions and Aid.
In Trump’s first term, the administration made significant changes to federal financial aid for college education, cutting key government funding programs and maintaining opposition to student loan forgiveness.
Federal college programs, including Federal Work-Study and financial aid scholarships, are at risk of reduction as the nation transitions into a new presidential term and new cabinet. Abolishing the DOE would require congressional approval and a supermajority of votes.
Many Republican lawmakers in Congress are pushing for a restructuring of the DOE rather than removing the department altogether. These representatives have advocated for school choice and denounced LGTBQ+ content and critical race theory.
On Nov. 20, Trump appointed Linda McMahon, former World Wrestling Entertainment CEO, as secretary of the DOE. The DOE’s main responsibility is to control finances for education — including the distribution of billions of federal dollars to schools and colleges across the U.S.
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Trump and the Republican-controlled Congress are also expected to change Title IV eligibility requirements, which directly determine which students can receive funding from the government. With eligibility changing, schools with students who meet these could get more money, while others would get less.
Federal funding is necessary for colleges and universities to do research and development, support student initiatives and provide financial aid scholarships. Research grants, scholarships and federal financial aid help cover tuition.
The president-elect has previously said he would cut off federal funding for colleges that teach “critical race theory, transgender insanity, and other inappropriate racial, sexual or political content.”
Trump’s campaign also proposed budget cuts to federal financial aid, including reducing Pell Grant funding through modifying eligibility requirements. Subsidized loans are also at risk of elimination, which, if accomplished, would force students to pay interest on loans while still in school.
The Trump administration hasn’t made any official statements regarding student loan forgiveness, but has consistently opposed President Joe Biden’s efforts. The administration created income-driven repayment plans, with a promise to eliminate student debt after a specified amount of payments.
During his first term, Trump supported efforts to end loan forgiveness for public sector workers after 10 years of service. Congressional approval is not required for Trump to modify student loan policies, including those by the current administration, according to CNBC.
In 2024, the Biden administration introduced the Saving on a Valuable Education Repayment Plan, an income-driven repayment plan with plans to reduce monthly payments for borrowers. The plan caps payments at a certain percentage of their income and offers faster forgiveness rates to borrowers with lower incomes.
SAVE promises to eliminate remaining student debt after a borrower makes a specified amount of payments.
When Trump returns to the White House in January, Democrats in Congress will likely block any major changes to the DOE, as these bills would require a supermajority of 60 votes to pass in the Senate. With only 53 Republican-held seats, the president-elect would need unanimous conservative support and multiple votes from liberal senators.
Published on December 4, 2024 at 11:44 pm
Contact Shivika: sgupta38@syr.edu