The U.S. Department of Education’s plans to close have faced a challenging reality. Despite losing half its staff in a significant reduction, the department’s student loan office is now rapidly hiring. The Office of Federal Student Aid (FSA) plans to add approximately 380 new workers, based on internal documents reviewed by NPR.
Role of FSA
FSA manages the nation’s $1.7 trillion student loan portfolio. Its responsibilities include handling communications with 43 million borrowers, managing repayment plans, and overseeing the Free Application for Federal Student Aid (FAFSA). Internal meetings revealed FSA has 731 full-time equivalent staff (FTEs), about half of its previous workforce of 1,440. The department needs to hire an additional 334 FTEs to achieve its targets. Since September, FSA has hired 52 new employees.
“What these job postings confirm is what we’ve known all along: Our jobs matter,” says Rachel Gittleman, president of AFGE Local 252. “And [our jobs] are needed in order for our federal student loan system to function adequately for borrowers.”
Response to Hiring
Ellen Keast, the department’s press secretary for higher education, explained, “Returning education to the states and breaking up the federal education bureaucracy does not mean that critical programs won’t continue.” Gittleman noted these new hires often fill roles lost during staff cuts. None of the new hires are returning former employees, yet many positions resemble jobs previously terminated.
The cost of recruiting, hiring, and training these new employees is uncertain. FSA has many responsibilities, including implementing new loan limits and repayment plans. An investigation by the U.S. Government Accountability Office (GAO) found FSA had ceased reviewing records and borrower calls right before last year’s cuts.
Past Cuts and Their Impact
Education Secretary Linda McMahon admitted last year that some agency staff reductions were excessive: “Sometimes you cut into the muscle and you cut a little too deep.” The Office for Civil Rights (OCR) illustrates this issue, where deep cuts resulted in processing delays for civil rights complaints, which the GAO reported cost taxpayers up to $38 million.
Student Loan Management Shift
This hiring surge comes as McMahon has signed interagency agreements to transition department responsibilities to other federal bodies, like the Treasury Department. However, the agreement directs FSA to manage and enhance these programs. McMahon’s comment that Education Department employees might work at other agencies creating confusion, particularly in a Senate hearing where Senator Tammy Baldwin questioned this strategy.
NPR interviewed a former FSA staffer applying for newly created positions. They mentioned a new series of application questions probing applicants’ commitment to constitutional principles and presidential policies. These questions have already triggered a lawsuit, arguing the implications of loyalty to the current administration. The former staffer expressed a desire to continue serving the public as committed in their oath.
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