Trump Cuts Put Entire Student Loan System at Risk
Donald Trump is gutting the Education Department—and creating opportunities for widespread fraud.

Education Department staffers warn that Trump’s mass firings will do irreparable harm to the student loan system. At least 300 people were fired last week from Federal Student Aid, the office within the department that manages student loans.
This was shortly followed by President Trump’s Thursday executive order to eliminate the Education Department entirely.
“They got rid of all of the quality checkers. It’s only a matter of time [before] they cause the whole system to fail,” a high ranking department staffer told The Guardian anonymously. “If this was a bank, and they fired all the quality assurance team, their regulator would have shut them down.… It’s the opposite of safety.”
These anonymous workers believe the purge will create opportunities for fraud and abuse and lead to more bureaucratic issues, like long wait times for loan service providers. “As an organization, we were already doing a lot more work than our staffing provides. We would need 10 times more people for a bank of our size,” the senior staffer said.
“What Linda McMahon has done is given 5,000 institutions the green light to cause massive amounts of taxpayer fraud and abuse of federal financial aid dollars financed by taxpayers without any check and balances in place,” one fired employee said. “The gatekeepers are gone.”
This is a massive blow to an already hobbled system. Many of those fired were working full time to make sure that American citizens could pay for college without drowning in millions of dollars in debt.