FAFSA and financial aid under Trump’s Presidency | Earnest

What Trump's second term might mean for FAFSA and financial aid

By Victoria Holliday | Published on March 30, 2026

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For millions of American students, the Free Application for Federal Student Aid (FAFSA) is their gateway to college affordability. But as proposals emerge to eliminate the Department of Education, students and families face uncertainty about the future of this longstanding financial aid infrastructure. What happens to this system if the Department of Education no longer exists? Let's dive into the complex machinery behind federal financial aid and explore what could happen.

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The Future of FAFSA: What Happens if the Department of Education Disappears?

FAFSA currently distributes over $114 billion annually in federal grants, loans, and work-study opportunities; accordingly, this system serves as the foundation of higher education financing in the United States.

The role of FAFSA administration extends far beyond simple form processing. The Department of Education's primary function is fundamentally financial, encompassing a wide range of critical responsibilities. These include collecting and verifying financial information from millions of families, coordinating with the IRS for income verification, managing relationships with thousands of educational institutions, overseeing the distribution of Pell Grants, and much more.

For students and families, the immediate concern isn't just about where FAFSA is administered, but whether a structural reorganization could impact:

Understandably, families are worried that changes to the administration of FAFSA could potentially disrupt the college plans of millions of students who depend on federal financial aid. The stakes are particularly high for first-generation college students and those from low-income backgrounds, who often rely most heavily on federal aid programs to make higher education accessible.

Navigating FAFSA: Your path to Financial Aid

Most students don't realize that FAFSA isn't just a simple form—it's a comprehensive path to financial support for your college education.

Action steps for students:

Pro Tip:

Create a FAFSA timeline. Mark key dates in your calendar, including:

Remember: Every dollar of aid you secure is a dollar less you'll need to borrow. Stay proactive, organized, and persistent in pursuing all available financial support for your education.

How could FAFSA change?

One possible scenario is for Federal Student Aid to become an independent agency, similar to the Social Security Administration or Federal Housing Administration. This wouldn't be unprecedented—many crucial government functions operate independently of cabinet-level departments. Alternatively, FAFSA oversight could shift to another department such as the Treasury Department.

What this means for students & financial aid

For students filling out FAFSA forms, the process might look largely the same on the surface. The real changes would happen behind the scenes, potentially affecting:

How to prepare for any FAFSA changes

Financial aid is not a luxury, but a lifeline for millions of students pursuing their academic dreams. While political transitions can create uncertainty, they also present opportunities to reassess financial strategies. Students should continue to maximize all available federal aid opportunities, and consider supplemental funding sources like private student loans to help bridge any potential education funding gaps. If you start to receive your financial aid package and see there’s a gap between what you’ve been awarded and what you need to attend your top-choice school, explore free scholarship options.

By remaining proactive, adaptable, and focused on their educational goals, borrowers can navigate uncertainty and continue investing in their future, one semester at a time.

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About the Author

Victoria Holliday

Victoria is the Head of Content at Earnest. She brings extensive ed-tech expertise from six years at Chegg, where she developed educational resources reaching over 20 million students nationwide. With a Master’s in Political Science and experience in public policy from several California campaigns, she’s passionate about creating accessible content that enhances student outcomes in the dynamic world of higher education.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. This blog post provides political predictions and does not reflect the views or opinions of Earnest.

1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.gov/.