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Despite significant staffing cuts mandated for the Department of Education, its Office of Federal Student Aid remains unaffected, continuing operations critical for student loan management.
On March 11, the Department of Education announced intentions to substantially reduce its staff, culminating in an executive order from President Donald Trump to dissolve the agency.
However, a spokesperson for the department confirmed that those involved in processing student loans and managing the Free Application for Federal Student Aid (FAFSA) have not faced employment losses during this restructuring. Madi Biedermann, a department spokesperson, stated, “No employees working on the FAFSA or student loan servicing were impacted by the reduction in force.”
According to the 2024 report, the Office of Federal Student Aid employs approximately 1,400 individuals and processes over 17.6 million FAFSA applications annually.
TRUMP STILL NEEDS CONGRESS’ HELP WITH PLAN TO ABOLISH EDUCATION DEPARTMENT
During an event on March 20, 2025, President Trump signed an executive order aimed at reducing the size of the Education Department, alongside school children who participated in signing their own versions.
In an update, the current Education Department reported that its processing pace for FAFSA applications has surpassed that of the previous administration, claiming an earlier submission of 8 million forms for the 2025-2026 academic year, representing a 50% increase from the prior year.
A recent Gallup survey highlighted a significant drop in public satisfaction with the education system, revealing that only 24% of Americans were content with the quality of education in January 2025, down from 37% in January 2017.
This executive order follows Trump’s longstanding criticism of the Education Department, where he has expressed a desire to minimize the federal role in education. On the campaign trail last September, he stated his aim was to stop the misuse of taxpayer funds meant to educate youth.
Trump reassured that the essential services associated with Pell Grants and student loans will persist, albeit transferred to different federal or state entities. “They’re going to be preserved in full and redistributed to various other agencies and departments that will take very good care of them,” he noted.
DEPARTMENT OF EDUCATION SIGNIFICANTLY DISMANTLED IN NEW TRUMP EXECUTIVE ORDER
During a signing ceremony in the East Room of the White House, Trump addressed attendees regarding the significance of this executive action.
A fact sheet released by the White House described the initiative as a way to “turn over education to families instead of bureaucracies,” instructing Education Secretary Linda McMahon to take necessary measures to facilitate the department’s closure while ensuring uninterrupted service delivery.
Supporters of dismantling the department reference the “Nation’s Report Card,” particularly the 2024 National Assessment of Educational Progress, which was released on January 27. This assessment, aimed at evaluating fourth and eighth graders, revealed nearly static math scores for eighth graders since 2022, with reading scores declining slightly across both grade levels.
Challenges to the executive order are mounting in the form of lawsuits from various unions, school districts, and advocacy groups asserting that the power to close a federal agency lies solely with Congress.
Senate Minority Leader Chuck Schumer (D-N.Y.) has called for judicial intervention to halt Trump’s attempts to dissolve the department. “The courts must act to uphold the rule of law and stop Donald Trump’s tyrannical power grab,” he stated.
In response, McMahon affirmed the department’s commitment to collaborating with Congress to ensure a lawful and smooth transition away from its existing structure. “We’re going to follow the law and eliminate the bureaucracy responsibly by working through Congress to ensure a lawful and orderly transition,” she said.
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