The Trump administration's recent policy shifts on education funding, student loans, and study abroad programs are raising concerns among students and educators. Federal budget cuts, changes to loan forgiveness programs, and workforce reductions in the Department of Education could have a lasting impact on higher education in the US.

Study abroad funding on hold

On February 12, the US State Department issued a temporary 15-day suspension of federal funding for study abroad programs, including the Fulbright Program, Gilman Scholarships, IDEAS Program, and Critical Languages Scholarships.

The reason for the pause has not been officially stated, but it has created uncertainty for students planning to study overseas. If the funding is not restored, students who rely on these scholarships may need to seek alternative financial support.

This decision may negatively impact thousands of students. For instance, Fullbright funds over 2,200 domestic and 4,000 international students every year to do research in the US. The Gilman Scholarship offers around 3,500 grants every year to hels US students study abroad.

Student loan repayment applications removed

On February 21, online applications for income-driven repayment (IDR) plans and federal Direct consolidation loans were removed after a court ruling blocked key parts of the IDR program. This move follows a recent court ruling that blocked aspects of the IDR program.

This has left many borrowers unsure about how to adjust their repayment plans, which could lead to added financial stress for those who were relying on these programs to make their loan payments more manageable.

The court ruling challenges parts of the Biden administration's student loan forgiveness and repayment reforms, creating confusion around what’s next for these programs. With fewer options available, borrowers now face more uncertainty in managing their student loan debt. The Department of Education has not yet provided a clear timeline for when the applications will be available again.

Federal Student Aid staff reductions

About 10% of the Federal Student Aid workforce has accepted buyouts – voluntary offers for employees to leave their positions, typically in exchange for financial incentives, resulting in a significant reduction in staff managing student loan programs.

With fewer employees handling financial aid services, students may face longer wait times for assistance with loan applications and repayments. The reduction in staff may also lead to slower processing times for FAFSA applications, making it more important for students to apply for aid as early as possible.

Protests over budget cuts

Higher education unions across the country have organized protests last week in response to proposed budget cuts, layoffs, and reductions in research funding. These changes could have a significant impact on students and faculty, potentially affecting the availability of financial aid, tuition costs, and job opportunities. With fewer resources available for educational programs and services, students may face increased financial burdens and limited support.

Advocacy groups are urging continued federal funding to ensure that higher education remains accessible to all. These protests reflect growing concerns that budget cuts could make it harder for students to afford college and for faculty to maintain their positions, ultimately affecting the quality of education and research opportunities available to students.

What's next?

Students who depend on study abroad scholarships, loan repayment programs, or financial aid services should stay informed about ongoing policy changes. Checking official government websites and speaking with financial aid advisors can help you navigate these shifts.

Advocacy efforts may also influence whether certain funding sources or student loan programs are restored. As decisions unfold, be prepared for potential adjustments to the financial planning and educational opportunities.