Today, there are nearly 43 million people in the U.S. reliant on federal student loans, with a total debt of $1.773 trillion, according to a recent report from the Education Data Initiative. The debate over the structure of these loans is ongoing as the Trump administration attempted to impose a pause on federal grant payments. On Jan. 28 U.S. District Judge Loren L. AliKhan blocked this pause, ensuring that institutions continue to receive federal funds. In response to growing student concern, the University of Maine recently established a federal transition information website to provide updates as federal changes occur since the University must comply with evolving state and federal laws as a public institution.
In 2024, UMaine received $226.1 million dollars in federal funds, and as of now will continue to receive funds through 2025. This is largely due to the Temporary Restraining Order that directed federal grant-making agencies to “not pause, freeze, impede, block, cancel, or terminate… awards and obligations to provide federal financial assistance to the States, and… not impede the States’ access to such awards and obligations, except on the basis of the applicable authorizing statutes, regulations, and terms” Despite this, the Trump administration maintains that the executive order to pause funding is still in effect.
As for individual federal student loans, this order has no impact on the allocation of funds. Through the confusion FAFSA has remained up and running, and all direct student aid is affected. Students will continue to receive federal aid despite the attempted pause.
In fact, the White House issued an official statement, clarifying that “the pause does not apply across-the-board” and that “any program that provides direct benefits to Americans” — like Social Security, Medicare and food stamps — “is explicitly excluded.” This extends to direct federal student loans.
Universities across the nation continue to push back against attempts to cut back federal funding. On Feb. 7. The National Institute of Health announced they would be capping the indirect cost rate for research grants to 15%. “In response, 22 states, including Maine, led a lawsuit and on Feb. 10, a federal judge temporarily paused the change for Maine and other states included in the suit at least until a hearing on Feb. 21,” according to the UMaine System.
This change would have major implications on federally funded research, placing more financial burden on R1 research institutions including UMaine.
All of this comes amidst the Trump Administration threatening to eliminate the Department of Education. Linda McMahon, Trump’s nominee to head the Department of Education, confirmed that the department could not be eliminated without a majority vote in Congress. While the law is unlikely to be passed, McMahon said “the department’s funding would be analyzed and potentially distributed differently,” according to Investopedia on Feb. 14.
Despite this, McMahon stated plans to expand the Pell Grant program to include certificate programs.
“I definitely think that workforce Pell Grants are something that could stimulate our economy. That would get those students into the workplace faster if they want to be electricians, HVAC developers, as well apprenticeships and internships,” said McMahon.
Additionally, she hopes to implement Public Service Loan Forgiveness Programs. This would provide debt relief to public service workers, including first responders and military personnel. McMahon’s anointment is pending Senate confirmation. Her candidacy faces major backlash in light of her support for eliminating the Department of Education.
The Legal Defense Fund (LDF), the organization who litigated Brown v. The Board of Education, warns that McMahon poses a threat to minorities across the nation. The LDF, in an official letter, to Congress wrote “as the leader of the foremost agency of education policy and programs in our nation, the U.S. Secretary of Education is entrusted with one of the most sacred responsibilities within our democracy: to guarantee that every student, regardless of race, color, national origin, sex, disability, or LGBTQIA+ status, is afforded the opportunity to succeed. Through her troubling words, actions, and otherwise limited experience, Linda McMahon is wholly unsuited for this position,” (naacpldf.org).
Overall the Trump Administration has brought significant changes to the White House. The Department of Education continues to be under attack, and policies are being upheaved that have been in place for decades or more. As of now students should not be concerned about their direct federal student loans.
