Trump Administration Buyouts Shrink Federal Student Aid Office by 10%
Following the Trump administration’s implementation of a deferred resignation program, the Federal Student Aid (FSA) office is facing a significant workforce reduction. According to an internal list obtained by USA TODAY, 124 employees have enrolled in the program, which offers full pay and benefits through September 30th. This represents approximately one-tenth of FSA’s total staff of 1,444 in 2024.
FSA’s Role in Higher Education
FSA is a crucial arm of the U.S. Department of Education, responsible for distributing financial aid to an estimated 10 million students annually. The office also oversees the federal government’s nearly $2 trillion student loan portfolio. Its services extend to assisting students defrauded or misled by colleges through its borrower defense division, resolving problems for student loan borrowers through its ombudsman’s office, and ensuring that schools receiving federal financial aid comply with the law.
Impact on Students
The reduction in FSA staff will have far-reaching implications for students seeking financial assistance for higher education. David Sheridan, Director Emeritus of Financial Aid at Columbia University’s School of International & Public Affairs, emphasizes the loss of "institutional memory" that will accompany the departure of experienced employees.
"Everyone for whom financial aid is part of their life is going to be affected by this," Sheridan said. "They were already underresourced and understaffed."
Buyout Program Details
The buyout program was part of the Trump administration’s broader effort to reduce the federal workforce. Approximately 75,000 employees, out of a total workforce of over 2 million, accepted the buyout offer. A federal judge in Massachusetts dismissed a lawsuit challenging the program, citing a lack of standing among the plaintiffs to bring the case.
Critics Call for Reversing Staff Reductions
Critics of the FSA staff reductions argue that it comes at a time when the agency is facing unprecedented challenges in delivering financial aid to students. Bryce McKibben, Senior Director of Policy and Advocacy at Temple University’s Hope Center for Student Basic Needs, expressed concern that the reductions would undermine the agency’s ability to support students in need.
"This is a very dangerous time to be reducing staffing for the Department of Education," McKibben said.
Conclusion
The reduction in staff at the Federal Student Aid office has raised concerns about the ability of the government to effectively support students seeking financial assistance for higher education. Critics argue that the cuts come at a time when the agency is facing significant challenges and that they will have a negative impact on students’ access to financial aid. It remains to be seen how the Trump administration’s buyout program will ultimately affect the functioning of the FSA office and the students it serves.
