Challenges in Restructuring the U.S. Department of Education

The U.S. Department of Education is undergoing significant changes. President Donald Trump had considered closing the department, but its crucial functions have proven necessary. The Office of Federal Student Aid (FSA), responsible for managing the nation’s $1.7 trillion student loan portfolio, is a key area of focus.

FSA recently announced plans to hire 380 new employees, as internal documents obtained by NPR reveal. This expansion follows a previous reduction-in-force that cut the department’s staff by nearly half. Currently, FSA operates with 731 full-time employees, aiming to increase that number to meet its operational needs.

Rachel Gittleman, president of the department’s employee union AFGE Local 252, emphasizes the importance of these roles. “Our jobs are needed for the student loan system to function,” she states. Many of the new positions correspond to those lost during the previous cuts.

Ellen Keast, press secretary for higher education, explains, “Returning education to the states doesn’t mean essential programs will cease.” Despite the hiring, former employees have noted the nature of the jobs remains largely unchanged.

The FSA faces challenges, such as implementing new student loan limits and repayment plans, while addressing issues like the review of loan servicing records. These tasks were suspended last year, as noted by the Government Accountability Office (GAO).

Education Secretary Linda McMahon acknowledges that some cuts were excessive. She says, “Sometimes cuts go too deep, and we’ve had to bring some staff back.” This situation mirrors challenges faced by the Office for Civil Rights (OCR), which experienced costly reversals after deep staffing cuts.

Potential changes include moving FSA responsibilities to the Treasury Department. McMahon’s interagency agreements aim to offload work but suggest Education Department employees will still handle many tasks.

Confusion about department staffing during a recent Senate hearing prompted questions from lawmakers like Sen. Tammy Baldwin. She inquired about the overlaps between departments, highlighting logistical issues.

An anonymous former FSA employee, now seeking reemployment, shared concerns about loyalty questions in the new application process. The emphasis on supporting the President’s priorities may affect decisions for new hires.