Student loans are among the areas overseen by the U.S. Department of Education and since President Donald Trump has followed through on his threat to gut the agency, questions are mounting about the fate of loan services.

The president signed an order Thursday he said begins the process of dismantling the department, even as questions mount about the limitations of executive power for this move.

A White House official said the skeleton agency will continue to run student loan programs and Pell grants but higher education advocates worry about borrowers running into issues.

Mike Pierce, cofounder and executive director of the Student Borrower Protection Center, feels the system was already broken.

"We expect that things will only get harder for working people with student debt and for families that are trying to pay for college," Pierce projected.

Pierce explained he hears from borrowers who have waited on the phone for several hours to talk with private companies the government contracts with. He predicted longer delays. There is also concern about updating eligibility for income-driven repayment plans. The Center said if you have service issues, contact your local member of Congress and submit what is called "casework," so a staffer can help. The White House said its actions can drastically improve program implementation in higher education.

Consumer advocates encouraged families to see if their state has a Student Loan Ombudsman, who could provide critical information. The executive order comes after the administration recently cut 50% of the Education Department's staff.

Pierce argued creating even more chaos and confusion could undercut the higher-education path for students coming from disadvantaged households.

"When these programs are run poorly, families that wouldn't otherwise be able to go to college, they're the first to miss out," Pierce contended.

The department is tasked with keeping for-profit colleges in check. Pierce noted there has been a lot of progress in weeding out problematic schools but he worries Trump's actions will lead to a resurgence of institutions engaging in predatory tactics.

Groups like Lumina Foundation have echoed similar concerns about the agency's fate and the effects on student loans and financial aid.

Support for this reporting was provided by Lumina Foundation.


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A bill passed by Virginia lawmakers would expand higher education opportunities to incarcerated people across the state.

House Bill 2158 aims to help community colleges partner with prisons to help people in jail get started on an associate's degree.

Currently, 70% of incarcerated people in Virginia are arrested again within three years of their release. David Coogan is an English professor at Virginia Commonwealth University and the founder of Open Minds, a prison education program that works at the Richmond City Jail.

He said education programs are one of the best ways to make sure people don't end up back in jail.

"The higher you go in education in prison, the less likely you are to go back to prison, to reoffend," said Coogan. "If you go all the way up to a PhD, it's like next to no chance - but most people with just a college degree or even a master's, you significantly reduce your chance of reoffending. "

People behind bars who receive a bachelor's degree have just over a 5% chance of going back to jail, according to the American Association of Colleges and Universities.

Gov. Glenn Youngkin has until May 2 to sign the bill into law.

Prison education could also cut costs for Virginia taxpayers. The Justice Policy Institute found that expanding education in prisons could save the state $365 million.

Coogan said he is hopeful that the bill would give incarcerated people a second chance.

"It's a mistake for people in society to think that, because of the one bad thing that they did, that they ought not to have a chance to learn how to be good, and be their best selves," said Coogan. "I'm in favor of the bill. I hope it organizes some kind of clarity and consensus around how we in higher education can deliver to the people in prison, because that's been lacking in Virginia."

In Virginia, 11 out of 45 correctional facilities offer college courses. The programs often face issues related to capacity and eligibility, leaving some without the chance to pursue their education.

Support for this reporting was provided by Lumina Foundation.



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Despite pushback from the Trump administration on colleges and universities recruiting foreign students, the University of Northern Iowa is part of a new exchange program.

The school is partnering with a university in Thailand to allow students to earn international business degrees, through its "2+2" business degree partnership program. Students from Assumption University in Thailand can take two years of classes at home and finish their international business degree at Northern Iowa's Wilson College of Business in Cedar Falls.

Chris Schrage, global opportunities coordinator at the University of Northern Iowa, said the opportunities run the gamut.

"Accounting, finance, management, marketing, supply chain," Schrage outlined. "All of our majors are aligned with their majors."

Schrage pointed out the "2+2" program is largely self-funded by students and private donors, which should allow the university to sidestep the controversy over international students in the U.S.

Beyond earning educational credentials, Schrage noted the program also takes cultural differences into account, helping students become better employees for international companies after they graduate.

"Understanding how both sides do business will help build the trust and know what steps to take in both situations," Schrage emphasized.

Northern Iowa is in the process of recruiting students now and Schrage added they hope to have Thai students on the Cedar Falls campus next year.

Support for this reporting was provided by Lumina Foundation.


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Today's college students may prefer communicating by text but New Mexico State University still finds person-to-person phone calls from faculty and staff effective at getting them to stay in school.

The "Calling All Aggies" campaign is a campuswide initiative which began in 2007 to improve student retention and graduation.

Freddie Romero, academic adviser at New Mexico State University, said first- or second-year students can worry a four-year degree will prove too difficult but a phone call from the right person or department can help.

"Sometimes the problems that students are dealing with require a more thorough conversation," Romero explained. "Today's economy and everything that students have to juggle, with the price of school and having to do jobs and take care of family members, it's hard."

Nationwide, the pandemic had a significant effect on college student retention, especially particularly among first-time freshmen and community college students. In the fall of 2023, the school's first-year retention rate increased to almost 75%, a more than a 2% jump from the previous year and near the highest level reached before the pandemic.

A second outreach program watches for signs of academic distress based on grades among freshman and sophomore students when they are six weeks into a semester. Romero pointed out early intervention can help catch what could become a serious issue, which ultimately affects a scholarship or student aid and prevents a promising student from enrolling the next semester.

"If somebody gets to that junior, senior year and they're considering stopping out it's a bummer, because they've already invested so much money and time here," Romero emphasized. "We know that when they do graduate with their degree their prospects for work and for advancement up the socioeconomic ladder is going to be a lot easier."

The program has been recognized with an innovation award by the Association for Orientation, Transition and Retention in Higher Education. This year's campaign begins May 15.

Support for this reporting was provided by Lumina Foundation.


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