“Any regulatory changes must be prospective only,” meaning that eliminations to loan forgiveness programs would only impact new borrowers, explained Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit that helps borrowers navigate the repayment of their debt.
WFMY-TV Greensboro
IF THE DEPARTMENT IS NO MORE, DO I STILL HAVE TO PAY MY STUDENT LOANS?
“No, it just means that a different agency is going to manage those loans. The loans aren’t owed to the Department of Education. The loans are owed to the federal taxpayer,” said Betsy Mayotte, President of The Institute of Student Loan Advisors.
Mayotte says she’s seen a lot of people on TikTok claim that they wouldn’t have to pay student loans if the department is dismantled. That is simply not true.
Fortune
It remains to be seen what exactly Trump will order or if he has the authority to carry out such a sweeping measure in the first place. But if the Department of Education (ED) were to close, it is possible that management of its current $1.7 trillion federal student loan portfolio would be moved to a different department or agency, like the Treasury Department, says Betsy Mayotte, president of the Institute of Student Loan Advisors.
WFMY News 2
Student loan expert, President of the Institute of Student Loan Advisors Betsy Mayotte, explains what borrowers could see if loans are moved from the Dept. of Education to WFMY News 2.
Newsweek
If the department were abolished, these functions might need to be transferred elsewhere, such as the U.S. Department of the Treasury, as Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, which provides free student loan advice, suggested to Newsweek.