The U.S. Department of Education, a focal point of President Donald Trump’s plan to decentralize federal education, faces a paradox: its essential functions persist even amidst significant downsizing. Despite plans to close the department, it is ramping up recruitment, particularly in its student loan division.
After experiencing a significant reduction in workforce, with half its employees laid off last year, the Office of Federal Student Aid (FSA) is now in the midst of a hiring spree. Internal documents acquired by NPR reveal that FSA aims to bring on approximately 380 new staff members.
FSA plays a pivotal role in managing the nation’s $1.7 trillion student loan portfolio, overseeing communications with 43 million borrowers, repayment plans, and the processing of the Free Application for Federal Student Aid (FAFSA). In an April staff meeting, FSA reported having 731 full-time equivalent employees, down from 1,440 prior to the Trump administration. To meet operational demands, FSA needs 334 more employees.
Since September, FSA has recruited 52 new staff. Rachel Gittleman, who represents department employees as president of AFGE Local 252, underscores the significance of these roles: “Our jobs matter and are needed for our federal student loan system to function adequately for borrowers.”
Addressing inquiries about the hiring surge following last year’s layoffs, Ellen Keast, the department’s higher education press secretary, clarified, “Returning education to the states and breaking up the federal education bureaucracy does not mean that critical programs won’t continue.” It is noted that none of the new hires are previous employees returning to old positions.
Despite significant staff changes, Gittleman remarks that the nature of the jobs remains mostly unchanged. Many new roles correspond to positions previously terminated or deferred due to resignation or retirement.
The challenge of recruiting, hiring, and training new employees is compounded by ongoing tasks such as implementing new student loan limits and repayment plans. The U.S. Government Accountability Office (GAO) highlighted that prior to the cuts, FSA had ceased reviews of loan servicer records, indicating a backlog of vital work.
Education Secretary Linda McMahon admitted publicly that the workforce reduction was sometimes excessive: “You always just want to cut fat. … Sometimes you cut into the muscle and you cut a little too deep.”
Similar issues affected the Office for Civil Rights, where cuts were eventually overturned due to court intervention, resulting in significant taxpayer costs.
Aren’t student loans moving to the Treasury Department?
The hiring at FSA occurs alongside efforts by McMahon to redistribute the department’s responsibilities across federal agencies, including transferring some functions to the Treasury Department. Despite this, Keast confirmed that FSA will continue to manage and enhance program delivery.
This restructuring led to confusion, as highlighted in a Senate hearing where McMahon admitted that Education Department employees remain involved in their original functions despite reassignments, prompting incredulity from lawmakers like Sen. Tammy Baldwin.
In the midst of this reshuffling, former FSA employees like one anonymous applicant, who was laid off last year, are vying for reemployment. The application process now includes questions on loyalty to government efficiency and the president’s policies, sparking legal challenges.
The applicant expressed a desire to return to public service: “We just want our jobs. We took an oath to serve the public, and that’s what we want to do.”
Edited by: Nirvi Shah
Visual design and development by: LA Johnson
