Education Department will no longer oversee student loans, 'special needs'
The U.S. federal student loan system, which currently manages about $1.6 trillion in loans for approximately 43 million borrowers, is facing a massive shift. Recently, the government announced that the management of this loan portfolio, along with other "special needs" programs, would be transferred out of the Department of Education, affecting borrowers nationwide, including veterinarians. This change could have significant implications for current veterinary students, recent graduates with student loan debt, and those considering veterinary school.
Department of Education Cuts Could Affect Your Student Loan Forgiveness—Here’s What Every Veterinary Professional Needs to Know
The U.S. Department of Education has been hit with sweeping cuts, eliminating 1,300 jobs across all divisions, including the crucial Federal Student Aid (FSA) office that manages student loans and Pell Grants. This major downsizing, which leaves the department 50% smaller than it was at the start of Trump’s administration, raises serious concerns for veterinary professionals who rely on federal loan forgiveness programs like Public Service Loan Forgiveness (PSLF)and Income-Driven Repayment (IDR) plans.