Is Trump Getting Rid of FAFSA?
The federal student aid system, relied upon by millions of American students, now stands at the center of political uncertainty. President Trump’s recent move to shut down the Department of Education has sparked serious questions about the future of FAFSA and financial aid in general.
Trump’s Executive Order and the Department of Education
On March 20, 2025, President Donald Trump signed an executive order instructing Secretary of Education Linda McMahon to begin taking steps to dismantle the Department of Education. Though the order does not automatically eliminate the department — congressional approval is still required — it signals a major shift in federal education policy.
The order claims it will not defund core student aid programs, such as Pell Grants or FAFSA. However, it also aims to terminate initiatives labeled as “diversity, equity, and inclusion.” This adds a layer of concern for students who rely on these programs for access and support.
Can Student Aid Continue Without the Department?
Critics are questioning whether financial aid can remain functional if the Department of Education is eliminated or heavily downsized. The department has already lost nearly half of its staff. As a result, administrative responsibilities such as processing FAFSA applications and resolving technical issues may face serious delays.
According to Beth Maglione, interim president at the National Association of Student Financial Aid Administrators, dismantling the department without a proper transition plan could jeopardize the delivery of billions in federal student aid. This is especially troubling for low-income students who cannot afford disruptions in financial support.
Where Will FAFSA Go?
The Trump administration has proposed transferring the student loan portfolio to the Small Business Administration. This move has raised concern, as the SBA is also cutting over 40% of its workforce. Although the SBA has expressed readiness to manage student loans, experts argue that it lacks the capacity and experience to handle the $1.6 trillion loan system.
Other experts have pointed out that the Treasury Department or the IRS might be more suitable agencies, especially since the FAFSA already connects to IRS systems to pull tax data. But even if another agency takes over, congressional approval is needed for such a transfer.
Will FAFSA Be Eliminated?
Despite the uncertainty, experts do not believe FAFSA will disappear. Mark Kantrowitz, a leading student loan expert, explained that the FAFSA system is embedded in many federal and state aid programs. Removing or replacing it would require a massive overhaul that the government is not currently equipped to manage.
Elaine Rubin, another student aid specialist, emphasized that FAFSA is essential for triggering financial aid processes. Even if the Department of Education is shut down, the application itself is likely to remain — at least for now.
Should You Still Submit FAFSA?
Yes. If you plan to attend college and need financial assistance, you should still complete the FAFSA. It remains the gateway to Pell Grants, federal student loans, work-study programs, and many state or institutional scholarships.
Even if changes are coming, those adjustments are unlikely to affect the current FAFSA cycle. Experts advise students to act as usual when applying for aid and to stay informed through reliable sources.
It is also important to know that the FAFSA does not collect data from undocumented parents or spouses that would put their status at risk. Privacy protections under the law remain in place unless explicitly changed through legislation.
President Trump’s executive order introduces major uncertainties for the future of student financial aid, but it does not mean FAFSA is going away immediately. While Congress debates the future of the Department of Education, students should continue using existing systems to apply for aid. Change may be on the horizon, but for now, the FAFSA remains essential for accessing federal and state college funding.
Last updated: May 1, 2025
