If the Ministry of Education no longer exists, will the FAFSA disappear?
The Department of Education applies for free and manages federal financial aid programs for federal student aid. However, the department may not be staying longer, Education Secretary Linda McMahon talks about ways to shut it down. Nearly half of department staff were cut this month, while the sudentaid.gov website was reduced by several hours.
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“The reductions in these workforces raise serious questions about the future functions of the federal aid program,” student loan expert Elaine Rubin said in an email. “There is very little communication about how the department plans to maintain effective action and prevent interference.”
If you are worried about filling out the 2025-26 FAFSA or the FAFSA you have submitted, this is what you need to know.
Is FAFSA gone?
Even if the Ministry of Education is abolished, experts do not believe that federal student aid or FAFSA is disappearing.
“Software systems and call centers are through contractors, but important work is still being done internally,” student loan expert Mark Kantrowitz said in an email. “The termination of employees after last year's FAFSA fiasco could be a disaster.”
Both Rubin and Kantrowitz said that the management of the FAFSA process could be transferred to another agency.
Rubin pointed out that FAFSA is not only a “trigger application” for federal financial aid programs, but also a “trigger application” for many state and institutional aid programs.
“Replacing FAFSA would be a huge task, but that doesn't mean it's impossible at some point,” Rubin said. However, because the complex network of programs relies on the application, “we don't really expect FAFSA to disappear at this point.”
Where can FAFSA go?
Experts say another federal agency is the candidate most likely to take over FAFSA processing if the education department is closed. Possibility includes the Treasury Department or the IRS because the FAFSA form is already connected to the IRS system to upload tax return data.
Cantrovitz said the U.S. Treasury is the most likely destination for student loan programs. He added that the federal government must continue to manage and manage student aid regardless of the agency’s type of agency.
“States cannot process student loans,” Cantrovitz said. “Private lenders lack the ability and appetite to privatize the federal student loan portfolio.”
Cantrovitz said that if FAFSA does move to the Treasury Department, borrowers may not notice much of the difference.
“Most features [of student loan programs] “It was implemented through contractors. The Ministry of Finance lacked experience with higher education rules, so there could be some initial confusion,” he said.
Should you also submit a FAFSA?
If you need help paying for the university, experts say you should continue to use FAFSA. This form is used to determine your eligibility for financial aid, including Pell Grants, scholarships, exercise programs, and student loans.
Rubin noted a group of people who are concerned about filing FAFSA: students who need to report undocumented immigrants. Applicants with eligible documents may be eligible for financial assistance; the status of financial “contributors” (such as parents and spouses) does not affect eligibility.
The Privacy Act of 1974 prohibits the agency from sharing certain identifying information without written consent or explicit agreement. Under the current agreement, the department shares the applicant's (but not the contributor) FAFSA information with the Department of Homeland Security to verify the applicant's identity. However, the government's positive stance on undocumented immigration has caused many families to worry about submitting information that could be illegally shared with immigration authorities.
She has no general advice for these applicants. “It really has to boil down to…the best fit for the family and what they are about.”
What is the expectation if you submit a FAFSA application
If you have submitted your FAFSA form, the Ministry of Education says your online application will be processed within one to three days (the paper form will take longer).
After the form is processed, you can log in to sudenterAid.gov to view your submission summary and make corrections. However, due to staff layoffs for layoffs, if you have any questions or issues with the app, you should expect delays.
The summary should include your Student Aid Index, which sends the department directly to the schools listed on the FAFSA form. Schools use your SAI to calculate the amount of financial assistance they will provide you. If you are concerned that the school has not received your information to determine your financial aid plan, please contact the school’s financial aid office.
