CBS 19 News TV Interview With Dr. Shaan Patel

What Happens to FAFSA If the Department of Education Shuts Down? Here’s What Families Need to Know
By Dr. Shaan Patel, CEO & Founder of Prep Expert

If you’re a parent or student, you’ve probably heard the headlines: President Trump has proposed dismantling the U.S. Department of Education. While the executive order isn’t final, and any full closure would require Congressional action, it’s left many families wondering—what happens to FAFSA?

As the founder of Prep Expert and someone who’s helped students earn over $100 million in scholarships and financial aid, I want to clear up the confusion and give you a clear game plan for what to do next.

First, Let’s Talk About FAFSA

FAFSA stands for the Free Application for Federal Student Aid. It’s the single most important financial aid form in the college application process. It determines:

• Your eligibility for federal student loans
• Whether you qualify for Pell Grants and other need-based aid
• How much work-study or state-based funding you may receive

And for many colleges, completing the FAFSA is required before you can even be considered for institutional scholarships or aid. If you’re a student or parent planning for college, this form is not optional—it’s essential.

Will FAFSA Go Away?

The short answer: No.

Even if the Department of Education is shut down, FAFSA is not going to disappear. Here’s why:

• Federal student loans total over $1.7 trillion. These aren’t just numbers on paper—they’re legally binding loans backed by Congress. Eliminating the infrastructure to manage those loans would create massive financial disruption.
• The Office of Federal Student Aid (FSA)—the branch of the Department that manages FAFSA—serves millions of students each year. Shutting it down without a replacement would be politically and logistically unfeasible.
• Most likely, FAFSA would be reassigned, not canceled. It could move to the Department of the Treasury, be administered by individual states, or form its own standalone federal agency, similar to what we’ve seen with other realignments of government functions​.

So, while there may be administrative changes behind the scenes, the application process will stay alive.

What Might Change (And What Could Go Wrong)

If the Department of Education is scaled back or shut down, temporary disruptions are likely. Here’s what you might see:

• Delays in FAFSA processing: System updates, disbursements, and customer service response times may slow down during the transition.
• Longer wait times for federal aid disbursements, especially during peak application windows.
• Confusion over new points of contact if responsibilities shift to other departments.

But again—this would be a disruption, not a dismantling. The funds are still there. The policies are still in place. The infrastructure just might take time to catch up.

What You Should Do Right Now

Despite the headlines, here’s what I’m recommending to all families:

1. Still Submit the FAFSA

It’s still active, and financial aid is still being distributed. And since federal funds are awarded on a first-come, first-served basis, apply early to maximize your options.

2. Don’t Rely on One Source of Aid

The smartest funding strategy is a diversified one. In addition to federal aid, look into:

• State grants and scholarships
• Private scholarships (websites like Fastweb, Bold.org, and Scholarships.com are great places to start)
• Institutional aid from the colleges themselves
• 529 college savings plans or employer-sponsored tuition assistance

Think of FAFSA as your foundation, not your only plan.

3. Document Everything

If FAFSA does move to another agency or the administration changes mid-process, you’ll want clear records of submission, Student Aid Reports (SARs), and correspondence. Keep digital and hard copies just in case.

4. Don’t Panic—and Don’t Delay

Yes, these are uncertain times in Washington. But don’t let that uncertainty stop your momentum. Delaying your FAFSA application or skipping scholarship deadlines can cost you thousands in lost aid.

Why This Moment Matters

This isn’t the first time the Department of Education has faced scrutiny. But the idea of shutting it down entirely, while unlikely, forces an important question:

Should federal student aid be tied to one department—or should we explore new, more efficient ways to serve families?

Whether FAFSA ends up under the Treasury, states, or a new office entirely, what matters most is functionality—can families still access the funding they need in a timely and transparent way?

I’m optimistic. The federal government isn’t going to walk away from its $1.7 trillion student loan portfolio. But I also hope this is a wake-up call to improve and modernize the system—because for many families, the current FAFSA process is still confusing, outdated, and overwhelming.

Final Thoughts

If you’re feeling anxious about the future of federal aid, I get it. Applying to college is stressful enough without worrying about government restructuring.

But here’s what I want every parent and student to remember:

Don’t let politics derail your pursuit of higher education. Fill out the FAFSA. Apply for scholarships. Take the SAT or ACT. Keep moving forward.

The road might be bumpy, but your goal hasn’t changed: a great college education, funded wisely, with minimal debt.

At Prep Expert, we’re committed to helping families navigate this journey—with test prep, admissions coaching, and scholarship support designed to open real doors.

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Dr. Shaan Patel is a Shark Tank winner, bestselling author, and founder of Prep Expert, an education company that has helped over 100,000 students improve their test scores and earn admission—and scholarships—to top colleges across the country.