The Department of Education’s workforce has been cut by nearly half since January, with approximately 3,800 positions eliminated through a combination of voluntary separations, reductions in force, and what current employees describe as a deliberate campaign to make continued employment untenable.

The cuts span every division of the agency, from the Office of Federal Student Aid—which administers $1.6 trillion in student loans for 43 million borrowers—to the Office for Civil Rights, which investigates discrimination complaints at schools receiving federal funding. Remaining staff report being reassigned to unfamiliar roles, losing access to critical databases, and receiving conflicting directives about their responsibilities.

Student Loan Chaos

The most immediate impact has been felt by student loan borrowers. Call center wait times have tripled. Processing of income-driven repayment applications has ground to a near halt, with a backlog now exceeding 2.4 million applications. Multiple federal judges have issued orders directing the department to continue processing applications, though compliance has been inconsistent.

Universities and colleges are equally affected. Title IV audits—the compliance reviews that determine whether institutions can receive federal financial aid—have been suspended indefinitely. Higher education policy experts warn that without proper oversight, the risk of fraud and abuse in the $150 billion federal student aid system will increase substantially.

Legal Battles Mount

At least seven lawsuits have been filed challenging the layoffs, with plaintiffs ranging from public employee unions to state attorneys general. The core legal argument centers on whether the executive branch has the authority to effectively dismantle an agency that Congress created by statute. A federal judge in Maryland has issued a temporary restraining order halting further reductions, though the administration has signaled it will appeal.