Education Secretary Linda McMahon told the House education committee Thursday that the Trump administration is delivering on a “clear mandate” to “sunset” the U.S. Department of Education, even as Democrats accused her of gutting civil rights enforcement and Republicans urged her to be the agency’s last leader.

Why it matters: The hearing showed how far the administration has gone in 16 months and how the changes will reshape student loans, civil rights complaints, and special education for tens of millions of students and borrowers.

What’s next on student loans: The One Big Beautiful Bill Act left undergraduate borrowing limits unchanged, but capped most graduate students at $20,500 per year and $100,000 total. Students in medicine, law, and dentistry can borrow up to $50,000 per year and $200,000 overall.

McMahon’s thoughts on the loan caps: She argued the new caps will pressure colleges to lower tuition, citing UC Irvine’s Flex MBA program, which dropped its price to $99,000 to fit under the cap. 

The IDEA question: Asked whether she plans to move oversight of the Individuals with Disabilities Education Act to another agency, McMahon would not commit to a yes or no, saying the department will co-administer the programs with other agencies before any transfer, drawing pushback from Rep. Suzanne Bonamici (D-Ore.).

The Office of Civil Rights Attorneys (OCR): McMahon said “OCR is important” and that she is “rehiring attorneys”, yet the administration’s own FY27 budget proposes a 35% cut to the office. She called the request “a floor,” not a target.

Reading between the lines: The Office of Federal Student Aid, cut roughly in half last year, is now trying to hire 334 new staff — a tacit admission that the earlier reductions hurt the office’s ability to function.

How This Connects: The College Investor has tracked how the new graduate student loan limits are already pushing some programs to reset pricing. UC Irvine’s MBA tuition cut is one of the first concrete examples, and likely won’t be the last. 

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