​Will you still have to pay student loans if the Department of Education is dissolved? 

11/02/2025
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10:49
CSTDiscussions about the possible elimination of the U.S. Department of Education (DoE) have sparked concerns about the future of student loans. While some may hope that abolishing the department would relieve them of their loan obligations, experts agree that borrowers will still be required to repay their debts.The DoE currently manages over $1 trillion in federal student loans, but its dissolution wouldn’t erase those debts. Instead, the responsibility for loan administration would likely transfer to another federal agency, such as the U.S. Treasury. Loan servicers, companies that collect payments and manage accounts, would continue operating as usual, meaning borrowers would still be responsible for their payments.Kevin Thompson, CEO of 9i Capital Group, notes that student loan programs existed before the DoE was established and would likely be absorbed into another government agency rather than disappearing altogether. While the transition could create uncertainty in loan servicing, it would not absolve borrowers of their obligations.Even if the DoE is abolished, existing student loan repayment structures would remain in place, though changes to forgiveness programs could occur. Some policymakers have suggested reducing or restructuring loan forgiveness initiatives. If funding for education shifts to block grants distributed to states, federal financial aid programs might become more limited, making it harder for some students to access loans and grants.While former President Donald Trump has expressed his desire to dismantle the DoE, doing so would require congressional approval. The department was established by Congress, meaning an executive order alone cannot eliminate it. Achieving the necessary votes to abolish the DoE remains unlikely, making drastic changes to student loan administration improbable in the near future.Regardless of political debates, student loans remain a financial responsibility. Experts advise borrowers to stay informed about potential policy shifts, keep records of their loan details, and explore available repayment options. While changes in loan administration may occur, the obligation to repay student debt is expected to persist.