With so many changes to the Department of Education and student loan servicing, it's difficult to foresee how much Trump's policies could cost the United States economy. Changes to repayment plans and collecting on defaulted 澳洲幸运5官方开奖结果体彩网:student loans could make it challenging for borrowers to make payments. Additionally, the increased number of revoked international student visas is transforming the U.S. into a less attractive destination to study abroad, which could result in approximately $44 billion in lost revenue in a given year.

What Has Changed forဣ St✤udents Since Trump Was Reelected?

澳洲幸运5官方开奖结果体彩网:Trump's first 100 days saw sweeping changes for education, including federal student loan policy. Each of these shifts may negatively impact the U.S. economy, though by how much remains to be seen.

Trump’s Efforts t🌳o Elimiꦅnate the Department of Education

In March 2025, Trump made it clear he would like to dismantle the 澳洲幸运5官方开奖结果体彩网:Department of Education, which would require Congressional approval. Following the announcement, the Department of Education stated it would cut 50% of its workforce as part of its "final mission."

This move would entail the transfer of the management of federal student loans to the 澳洲幸运5官方开奖结果体彩网:Small Business Administ🙈ration (SBA). The Health and Human Services Inspector General, who's responsible for government oversight, stated that the SBA has recently had a 40% reduction in its workforce and isn't equipped to handle the sheer scale of the federal student loan portfolio. The Inspector General warns borrowers will experience "...erratic and inconsistent management of their federal student loans. Errors will prove costly to borrowers and ultimately, to taxpayers."

Changes to IDR Plans

The status of the 澳洲幸运🤡5官方开奖结果体彩网:Saving for ꦰa Valuable Education (SAVE) plan has been tied up in the courts for months, but the block on the program was recently upheld. Although SAVE remains listed as a repayment option on the Federal Student Aid website, borrowers can no longer select it an option. The existing 8 million borrowers enrolled in SAVE will remain in an 澳洲幸运5官方开奖结果体彩网:interest-free forbearance until the situation is resolved or servicers are able to bill borrowers for the appropriate monthly amount.

Defaulted🐠 Student Loan Collections Restarting Soon

Student loan repayment has been on and off again since the pandemic. However, the Department of Education 澳洲幸运5官方开奖结果体彩网:began collecting on defaulted stud🍎ent loans on May 5, 2025. Borrowers who don't make payments or sign up for a payment plan will see their 澳洲幸运5官方开奖结果体彩网:wages garnished starting this summer. The 澳洲幸运5官方开奖结果体彩网:collection process will impact the more than 5 million 澳洲幸运5官方开奖结果体彩网:borrowers currently in default.

International Students and Student Loans

Amid the massive shifts in the Education Department's priorities and the crackdown on campus free speech, over 1,200 international students have had their visas or legal status revoked since late March.

Unlike U.S. citizens, international students studying in the U.S. cannot receive federal student loans. Since international students bear the responsibility for financing their education, they inject billions of dollars every year into the economy. During the 2023–2024 academic year, international students contributed nearly $44 billion and supported over 378,000 jobs in the U.S. If these 澳洲幸运5官方开奖结果体彩网:students don't see the U.S. a▨s a safe and viable option, then other countries stand to reap these benefits.

The Bottom Line

Students, both domestic and international, have never faced more uncertainty when taking out 澳洲幸运5官方开奖结果体彩网:student loans. For those local to the U.S., the massive changes to the Department of Education and workforce cuts will likely lead to con🀅fusion and costly mistakes.

If you have student loans, it's important to document the payments you've already made (especially if you're on an income-driven repayment (IDR) plan) and stay in touch with your loan servicer to avoid falling behind on payments.