The U.S. Department of Education is undergoing a significant transformation as workforce reductions aim to cut nearly half of its employees by March 2025. Driven by the Trump administration's efforts to either reduce or dissolve the department, concerns are rising among students, parents, and educators regarding the future of student loans, the Free Application for Federal Student Aid (FAFSA), and Individualized Education Programs (IEPs). This article explores the potential consequences of these changes in an accessible yet informative manner.
One major area of concern involves the $1.6 trillion federal loan portfolio. Although Congress would need to intervene to completely eliminate this portfolio, the Federal Student Aid (FSA) office has already experienced substantial layoffs. These cuts have resulted in the loss of critical personnel responsible for managing repayment plans and forgiveness programs. A former FSA employee expressed fears about delays and inefficiencies, which could hinder initiatives like Public Service Loan Forgiveness if the remaining team cannot maintain pace. Despite the loans themselves being secure for now, their management might shift to another agency should the department close.
Another focal point is the FAFSA process, which plays a crucial role for 17 million students seeking grants and loans. Legally tied to the Higher Education Act, FAFSA will continue to exist, but recent workforce reductions may disrupt its implementation. Last year’s problematic overhaul already caused frustration among applicants, and with fewer staff members available, processing times could extend further. Acting Under Secretary James Bergeron mentioned that the 2026-27 FAFSA was on schedule for an October 1 release, but a four-hour system outage shortly after the layoffs highlighted ongoing challenges. Such disruptions may also affect colleges, potentially delaying financial aid disbursements and causing difficulties for students.
In addition, Individualized Education Programs, which support children with disabilities under the Individuals with Disabilities Education Act (IDEA), face possible enforcement issues. The Office for Civil Rights, now operating with minimal staff, handles discrimination complaints related to IEPs and 504 plans. Brittany Coleman, a former civil rights attorney, cautioned that families might encounter delays in resolving disputes due to reduced oversight. This situation could lead to schools failing to meet accommodation requirements, placing additional burdens on parents advocating for their children’s educational rights.
As the U.S. Department of Education undergoes these transformative changes, maintaining awareness of evolving circumstances surrounding student loans, FAFSA, and IEPs remains essential. While these programs will persist, navigating the upcoming challenges may require increased vigilance and adaptability from all stakeholders involved.