What Thursday’s Confirmation Hearing Tells Us About the Future of Student Loans

President Donald Trump’s nominee to head the United States Department of Education said if Congress approved them, she would implement essential student loan programs.

During Linda McMahon‘s congressional hearing Thursday, she laid out her vision for the department. She did indicate that Public Service Loan Forgiveness Programs (PSLF) and Pell Grants would stay and could even be expanded. What was noticeably missing, however, was any mention of paused student loan repayment plans.

Senators have not yet voted to confirm McMahon, the former CEO of World Wrestling Entertainment (WWE) who led the Small Business Administration during Trump’s first administration. Here are some of the things we learned about how she would approach student loans if confirmed.

She Would Implement PSLF As Long As Congress Keeps Funding It

McMahon confirmed that she would fully implement the Public Service Loan Forgiveness Programs (PSLF) under congressional direction. She also left the door open for other forgiveness programs if Congress approves them.

“There are programs that have already been passed by Congress that do, in fact, grant loan forgiveness for public service, first responders, military, et cetera. We certainly should honor those programs,” McMahon said. “If we want stronger or more programs for loan forgiveness, then I think Congress should pass those programs, and then we would implement it.”

Republican congressional leaders have been critical and proposed cutting or reducing student loan forgiveness plans, including PSLF, as the plans increase the federal budget and tax costs for all Americans. Republicans control both the House of Representatives and the Senate, making it more likely that they pass legislation like that.

McMahon Would Encourage The Expansion of Pell Grants

McMahon said she would not defund Pell Grants, the largest source of federal grant aid to college students. In the hearing, McMahon said she would even like to see an expansion of Pell Grants for short-term certificate programs.

“I definitely think that workforce Pell Grants are something that could stimulate our economy, provide opportunities for those who want to participate in a skilled-based learning,” McMahon said. “That would get those students into the workplace faster if they want to be electricians, HVAC developers, as well apprenticeships and internships.”

Congress sets the Pell Grant budget, and a recent federal budget proposal showed some Republican lawmakers want to reform the program and cap grants at the median cost of attendance.

Department of Education Closure Could Endanger Student Loan Repayment Plans

Other student loan repayment plans were not directly mentioned. Borrowers under certain repayment plans, such as the Saving for a Valuable Education (SAVE) program, have been in limbo due to ongoing lawsuits.

The Department of Education handles student loans, and in her hearing, McMahon outlined a plan that would essentially gut the agency.

In the past, Trump has promised to eliminate the Department of Education. However, Congress would have to pass a law to cut the department, and it may be difficult to get enough votes to do this.

While McMahon confirmed that the department could not be shut down without congressional action, she said its funding would be analyzed and potentially distributed differently.

The Department of Education manages Federal Student Aid, which provides grants and loans to college students. McMahon did not say what would happen to student loans if the department is eliminated.

If the Department of Education were eliminated, federal student loans could be transferred to another federal agency like the Treasury Department, Michelle Zampini, senior director of college affordability for The Institute for College Access and Success, told Investopedia.