‘Put an End to This Madness’: Alex Padilla Rips Trump Plan to Split Student Aid Office From Education Department

Sen. Alex Padilla (D-Calif.) criticized the Trump administration’s reported plan to separate the Federal Student Aid office from the Education Department, warning that the move could make higher education harder to access for low-income and first-generation students.

In a post on X on Sunday, Padilla questioned Republicans’ response to the proposed changes and called for Democrats to regain control of Congress. "We need to take back Congress and put an end to this madness," he wrote.

Where are Republicans as Trump moves to dismantle the Education Department’s student loans office, making it even harder for low-income and first-generation students to access higher education? We need to take back Congress and put an end to this madness. pic.twitter.com/Cye5QGd50x

— Alex Padilla (@AlexPadilla4CA) October 18, 2026

Trump Administration’s Student Aid Plan

The Trump administration is preparing to make Federal Student Aid an independent agency by Oct. 1, 2027, a plan that could reshape how 45 million borrowers manage $1.6 trillion in outstanding federal student debt. The proposed transition was detailed in an Oct. 15 report based on three sources familiar with the matter and internal documents reviewed by The Washington Sun.

Officials were reportedly preparing plans for the new agency’s budget, audits, investigations, human resources and procurement functions. Current and former officials raised concerns about the pace of the transition and the office’s readiness to operate independently. Melanie Storey, a former Federal Student Aid director, called the proposed timeline "extraordinarily complex work," according to the report.

The Education Department disputed the report, calling it "fake news." The White House Office of Management and Budget also described the reporting as "inaccurate" but did not specify which details it disputed.

The White House and the Education Department did not immediately respond to Benzinga’s request for comment.

Federal Student Aid Faces Staffing Cuts

Federal Student Aid’s workforce fell from 1,444 employees in January 2025 to 861 by May 2025. The cuts affected teams overseeing loan servicers, borrower support and financial aid technology systems.

Current federal law requires Federal Student Aid to remain within the Education Department, meaning its separation would require an act of Congress, according to the report.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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