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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Latino students in Tennessee and nationwide apply for financial aid at higher rates than some other ethnic groups, according to new research but they receive the lowest average awards.

The most recent trend data from Excelencia in Education show 85% of Latino students applied, and 71% received college financial aid, as new executive actions affect higher education funding.

Emily Labandera, director of research for the group, said first-generation Latino students prefer to leverage grant aid instead of student loans.

"They're not as likely to accept student loans that are offered to them if they are offered as part of their package," Labandera explained. "Latino students and their families are more averse to taking out loans. They don't really see loans as a financial aid 'award.'"

She pointed out a high number of Latino students who attend community college work at least 30 hours a week, go to school part-time, or live off-campus or with family to help them avoid having to use federal financial aid.

Labandera noted 45 higher-ed institutions have earned her group's "Seal of Excelencia" and are working to make college more affordable for Latino, and all, students.

"They might be offering paid internships or they have partnerships with employers in their area that are really connecting their students to those opportunities," Labandera outlined. "The students are getting 'real live' skill sets, particularly in their areas of interest or in their field of study."

She added some colleges recognize unexpected financial challenges, even a $500 emergency, may push students out of school, so some offer special forms of aid for urgent needs. Many also provide full tuition scholarships based on family income, helping lower-income students stay enrolled.

Support for this reporting was provided by Lumina Foundation.

A new report shows Illinois youth now have more apprenticeship and internship opportunities, with an increase in women and minority participation but significant disparities in representation remain.

The study by the workforce development organization SkillsUSA and Northern Illinois University found the number of women in apprenticeships has doubled since 2019.

Jason Klein, senior director of learning partnerships at Northern Illinois University, said apprenticeship and internship opportunities for women are often low-paying or unpaid, which can limit their options in the workforce.

"That really limits student access to them," Klein explained. "Lots of students then have to choose between an internship or a paid job doing something else, which may not be contributing towards their movement forward within a desired career pathway."

Klein added research also shows internships and apprenticeships can increase wages for students by as much as 115%.

Illinois had more than 20,000 active registered apprentices in 2024, with 75% of them in the construction industry. Klein noted the increase is partially due to College and Career Pathway Endorsements and the state's Post-Secondary and Workforce Readiness Act.

However, he pointed out only a small percentage of students benefit from the opportunities.

"This is still relatively new policy," Klein stressed. "Given that, to what degree does educational leadership and community leadership impact this? So there's a lot of room for us to continue to study this and we hope to be able to do that."

Klein emphasized they want to study more districts offering a high number of work-based learning opportunities, since typical indicators of success like funding, location and size were inconsistent. He added better data collection is needed to help understand how schools can improve what they offer to students.

"We know that human beings learn best when the learning is not only super engaging, but deeply meaningful to them personally," Klein observed. "The best way to do that is by making learning authentic. That's, I think, the biggest argument for why this work needs to take place."

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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