- Nearly 2,000 positions eliminated in agency overhaul
- Federal judge reinstated workers only to close entire divisions
- Student Aid Office relocation threatens $1 trillion loan portfolio oversight
- Reinstated employees face unclear job status and benefits expiration
- Diversity training suspensions precede workforce reductions
The Department of Education's unprecedented restructuring has left thousands of federal employees grappling with professional uncertainty. Multiple reinstated workers who spoke anonymously describe a climate of instability, with some returning to offices solely to collect belongings before final termination. The February reduction-in-force (RIF) initially eliminated probationary hires before legal challenges temporarily restored positions.
One reinstated public affairs specialist revealed their communications division was permanently shuttered days after returning. We're career public servants, not political appointees,the employee stated. Closing entire teams that ensure school compliance puts vulnerable students at risk.Analysts note the Office of Federal Student Aid (FSA) relocation to the Small Business Administration could create oversight gaps in its $1.3 trillion loan portfolio.
New York City's FSA eligibility review team dissolution illustrates regional impacts. Former staffers warn school compliance checks will diminish, potentially enabling inflated student debt. Program reviews prevented predatory lending practices,explained a terminated oversight officer. Without this safeguard, borrower defense claims could skyrocket.
The restructuring coincides with controversial personnel policies. Eight employees remain on administrative leave since January for attending voluntary diversity seminars. A 2025 Executive Order prohibits divisive training concepts,though critics argue this targets career bureaucrats rather than political staff.
Human resources systems appear overwhelmed, with reinstated workers reporting paycheck delays and lapsed healthcare coverage. An FSA attorney described spending unemployment benefits before being rehired without official notice. Management can't confirm our roles or longevity,they noted. This limbo undermines the agency's ability to serve students.
Education policy experts identify three systemic risks: 1) Loss of institutional knowledge in loan servicing 2) Erosion of nonpartisan civil service protections 3) Accelerated privatization of federal student aid programs. The FSA's relocation could particularly impact low-income borrowers, as SBA lacks equivalent student-facing infrastructure.
Former Secretary of Education Arne Duncan warns: Dismantling oversight mechanisms during the student debt crisis is economically dangerous.Recent Department of Education protests highlight bipartisan concerns, with activists noting special education programs face similar uncertainties.