Is US higher education in danger as Trump dismantles student loan protections?

In a sweeping executive order signed Thursday, US President Donald Trump has begun dismantling key functions of the federal Department of Education, triggering widespread concern about the future of student loan programs and what it means for the 43 million Americans and thousands of international graduates who rely on them.

The move significantly weakens the Education Department’s authority, slashes its workforce by nearly 50%, and raises serious questions about how federal student loans will be managed going forward.

While the Trump administration has promised that core student aid programs like federal loans and Pell Grants will remain intact “for now,” that status may be temporary.

What this means for US students:

1. Delays and confusion in loan servicing

With a major portion of the Office of Student Aid’s staff laid off or bought out, students and borrowers could face longer wait times for application processing, payment assistance, and problem resolution.

A former department official warned that staff responsible for warning borrowers before they default have already been let go—possibly increasing the risk of missed payments and penalties.

2. Uncertainty around loan forgiveness

Trump’s executive order seeks to restrict the Public Service Loan Forgiveness (PSLF) program. Under the proposal, borrowers working for NGOs or public institutions that disagree with Trump’s political agenda—such as those supporting LGBTQ+ rights or immigration advocacy—may be excluded. This not only threatens the financial stability of current public servants, but also discourages new graduates from pursuing careers in public service.

3. Cancellation of affordable repayment plans

The administration has effectively shelved Biden’s SAVE Plan, which allowed borrowers to cap monthly payments based on their income. Officials have said the plan is “not coming back,” and applications to other income-driven repayment plans have been paused for at least three months. When they return, new plans could require higher monthly payments, adding pressure on low-income borrowers and recent graduates.

4. Privacy concerns

Reports that Elon Musk’s Department of Government Efficiency (DOGE) has gained access to borrowers’ private loan data have caused panic among students and recent graduates. A court temporarily blocked access in some cases, but the situation remains unresolved. Privacy advocates warn this data could be used for political targeting or surveillance, undermining trust in the federal loan system.

5. Erosion of consumer protections

Trump’s overhaul of the Consumer Financial Protection Bureau (CFPB)—a key agency in exposing student loan fraud and securing borrower refunds—means students will have fewer avenues for justice if they are misled or exploited by loan servicers. The firing of the student loan ombudsman and the dropping of lawsuits against abusive lenders is seen as a green light for misconduct.

Global impact and warning signs

Though primarily affecting American students, the ripple effects could extend beyond US borders. Many international students studying in the US also rely on federal programs for aid, and foreign universities may reconsider partnerships or exchange programs if Washington withdraws from regulating or supporting its education system.

In a climate already burdened by rising tuition fees, housing costs, and economic uncertainty, these changes could make higher education even less accessible—especially for underprivileged and minority communities.

"I’ve dedicated my career to supporting college affordability... and it is heartbreaking to see that dissolving before my eyes," said Colleen Campbell, a former senior official at the Office of Student Aid.

While Trump’s administration insists the changes are about “returning power to the states,” critics say it’s really about defunding education, undermining student protections, and pushing the burden of higher education onto individuals with fewer tools to manage it.

For millions of current and future students, the message is clear: navigating the path to a college degree in the US just got a lot harder.