Over the years, I've challenged quite a few people to show me where the Constitution authorizes the federal government to handle, much less subsidize, student loans. Nobody has ever given an answer other than a few half-hearted attempts at invoking "promote the general welfare." But the federal government has been involved — but that involvement may now be one step closer to ending.
The Education Department is planning to offload its student loans office, working rapidly to stand up a new independent agency that would take over what has long been a core part of the department’s mandate, according to three sources familiar with the matter and internal documents reviewed by The Washington Sun.
The Trump administration plans to spin off the Federal Student Aid office by Oct. 1, 2027. Richard Lucas, the office’s chief operating officer, is spearheading the change with the White House’s Office of Management and Budget.
So, what will the new office look like? So far, details are scarce — but repayment will still be expected.
If carried out, the plan would reshape how 45 million borrowers repay the $1.6 trillion currently in the Education Department’s portfolio of outstanding debts. It would also raise additional legal complications around the future of the department — an agency President Donald Trump and Secretary Linda McMahon have repeatedly said they want to eliminate entirely.
Well, a significant number of those borrowers have the notion that the taxpayers should repay the $1.6 trillion in debts, despite the fact that these young skulls full of mush signed contracts, which they presumably read, including the section on repayment. (Oh, who am I kidding? Half of them can't read.) But that's neither here nor there, at least, not for now.
There are some in the Education Department who are, of course, against the move. They think that the administration is rushing this overhaul, and they may be right; one of President Trump's second term priorities was to shut down this troublesome and likely unconstitutional department altogether. As for the Federal Student Aid Office's complaint that they "don't know how to be independent," well, the proper reply to that is, "learn." This has already dragged on for far too long.
In fact, there's an excellent argument to be made that this move doesn't go nearly far enough. The ideal solution is this: Shut down Education completely. Heck, shut down several other likely unconstitutional agencies and departments as well, like Energy, and Environmental Protection Agency. All those young skulls full of mush right now who have outstanding loans, well, they should simply be told this: You're going to pay them back one way or another, yourself, as the contract you signed states.
After that, no more government loans. No more federal grants. No more government involvement in financing education. Let every applicant to an education loan go hither to their local bank or other lending institution, plunk down their high school grade report, their intended course of study, and make their case. Let the lending institutions decide which is a good risk and which should be tendered a loan.
Oh, and then, watch all the university-level Underwater Ethnic Dog-Polishing Studies degree programs shrivel up like a marshmallow in a microwave.