Trump says states should run schools in push to close Education Dept.
President Donald Trump discussed the next steps in his efforts to dismantle the Department of Education.
The Federal Student Aid Office, which operates under the U.S. Department of Education, faces continued uncertainty as President Trump plans to eliminate the agency.
The Trump Administration pledged to dismantle the Education Department, which provides funding to public schools for millions of students. The department also manages college financial aid, Pell Grants, and oversees $1.6 trillion in federal student loans. In 2024, Ohio landed among the top states with the highest amounts of student loan debt in the country.
Trump is already preparing an executive order to close the agency and “bring schools back to the states.” What happens to Ohio’s student loans if the Department of Education is terminated? How much money does the state receive in student loan funding? Here’s what to know.
What happens to student loans in Ohio if the Department of Education goes away?
If plans go through to axe the Department of Education, the new Education Secretary Linda McMahon says student loans would not be affected, USA TODAY reports. Funding streams like Pell Grants, federal student loans and Title I financial assistance for low-income schools wouldn’t be affected by Trump’s efforts to downsize.
Experts say the U.S. student loan portfolio could shift from the Dept. of Education to the Department of the Treasury, but existing borrowers should not be afraid of terms and conditions of student loans changing, according to NorthJersey.com.
“Even if the loans were to move to a different agency, the terms and conditions would not change. This would not get rid of Public Service Loan Forgiveness programs (PSLF), for example. It would not change or privatize interest rates,” Betsy Mayotte, president of The Institute of Student Loan Advisors, told the publication. “Any changes would come only if Congress approves them and votes to approve a spending bill still being negotiated that won’t be created until April or May.”
Ohio receives billions in federal student loan funding each year
The Department of Education spent $268.35 billion in funding in 2024, according to USA Facts. Ohio’s estimated portion of the DOE’s expenditure for fiscal year 2025 is more than $5.65 billion, according to previous Dispatch reporting.
Ohio expects to reach nearly $3 billion in student loan volume for 2025, but that figure doesn’t necessarily represent the total amount allocated to the state for student loans. Rather, the preliminary estimates are based on currently available data from state tables for fiscal years 2023, 2024, and 2025. The most current actual numbers are for 2023, where federal direct student loans alone equaled $2.7 billion.
How many public colleges and universities are in Ohio?
The Ohio Department of Higher Education says that the state has 14 universities with 24 regional branch campuses, 23 community colleges, and over 70 adult workforce education and training centers statewide. The state’s public institutions serve nearly 600,000 students across the state.
What does the Education Department do?
The U.S. Department of Education helps provide funding to schools, manages financial aid and student loans, and collects data on colleges and students since the agency was established by Congress in 1979.