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Functions including student loans and financial aid are expected to be transferred to other agencies.

The letter did not single out diversity statements but broadly said the department saw the use of race in “admissions, financial aid, hiring, training, and other institutional programming” as illegal.

“It strikes fear in the hearts of tens of thousands of low-income students who are now wondering, ‘What will happen to my financial aid?

But it has already led to the US president freezing financial aid to the country.

In order to ensure compliance, the office conducts investigations and reviews into areas like grading, financial aid, admission and recruitment.