Challenges in Maintaining the U.S. Department of Education’s Student Loan Work

President Donald Trump’s intention to dismantle the U.S. Department of Education faces a significant obstacle. The department continues to handle crucial tasks that are necessary for maintaining student loan operations. Despite a major staff reduction last year, the department’s student loan division is now expanding its workforce. According to internal documents obtained by NPR, the Office of Federal Student Aid (FSA) is hiring approximately 380 new employees.

The FSA plays a critical role in managing the country’s $1.7 trillion student loan portfolio. It handles various aspects such as borrower communications, repayment plans, and the Free Application for Federal Student Aid (FAFSA). During an internal meeting in April, FSA employees learned they currently have 731 full-time employees (FTEs), about half of what it was before the Trump administration’s changes. The department plans to hire 334 more FTEs as per its target.

NPR’s documents revealed that since September, 52 new staff members have already been hired. Rachel Gittleman, a former FSA staffer and current president of AFGE Local 252, emphasized the importance of these jobs for the federal student loan system. Gittleman remarked, “Our jobs are crucial for ensuring borrowers receive adequate support.”

Ellen Keast, the department’s press secretary, clarified the need for hiring despite recent cuts. She said, “Returning education to the states and breaking up the federal education bureaucracy does not prevent essential programs from continuing.” Politico first reported the hiring news, which highlighted that none of these hires involves rehiring former employees.

Gittleman noted that the jobs available now closely resemble previously terminated positions. She explained that some roles ended last year or were part of deferred resignation or retirement programs. The cost of recruiting and training these new employees remains uncertain. The FSA faces multiple challenges, including implementing new loan limitations and repayment plans, while also handling important tasks left unfulfilled after recent cuts.

A U.S. Government Accountability Office (GAO) investigation discovered that right before last year’s staff reductions, the FSA stopped reviewing loan servicer records and borrower call recordings. Education Secretary Linda McMahon later admitted that the agency’s cuts were too severe in some areas, acknowledging, “Sometimes you cut into the muscle a little too deep.” She noted a few staff were rehired.

The Office for Civil Rights (OCR) faced similar issues with deep cuts. Court interventions eventually reversed these reductions as OCR struggled to address civil rights complaints adequately. A GAO report indicated that these staffing changes cost taxpayers between $28.5 million and $38 million.

Despite announcement of new interagency agreements to transfer responsibilities, including moving FSA duties to the Treasury Department, hiring at the Department of Education continues. McMahon’s March letter emphasized reclaiming integrity and accountability in managing the federal student aid portfolio. However, the ongoing hiring shows the department still handles its original tasks. McMahon stated in a Senate hearing that employees merely relocated to new agencies while maintaining the same functions, a statement that perplexed some lawmakers.

NPR spoke with a former FSA staffer applying for one of the new positions, describing the hiring process as closely resembling previously held roles. They noted the addition of questions about an applicant’s dedication to the Constitution, government efficiency, and advancing the President’s orders, which has prompted legal challenges.