The Trump administration is gearing up for large changes to the Department of Education, which oversees a $1.6 trillion portfolio of student loans.

President Donald Trump has reportedly set his sights on eliminating the U.S. Department of Education, a long-time Republican goal and promise from his campaign. The proposed plan, though, gives rise to a host of unanswered questions—not least of which is what happens to the 42-plus million Americans with federal student loan debt.

If you paid interest on your student loan debt in 2024, you may be able to deduct up to $2,500 from your taxable income.

The Trump administration has promised to eliminate the Department of Education, shifting more responsibility back to the states. States already have significant control over education — particularly when it comes to setting standards and deciding on curriculum,

President Trump could order the U.S. Department of Education to shut down. Jill Schlesinger has tips for student loan borrowers if that happens.