The U.S. Department of Education finds itself in a paradoxical position: hiring hundreds of employees while simultaneously pursuing plans to close the agency entirely. Internal documents obtained by NPR reveal that the Office of Federal Student Aid is adding approximately 380 new workers, less than a year after the department lost roughly half its staff in a massive reduction-in-force.
The Office of Federal Student Aid, which manages the nation's $1.7 trillion student loan portfolio and serves 43 million borrowers, currently operates with 731 full-time equivalent staff members. According to documents prepared for an internal all-staff meeting held in April, the office previously employed 1,440 staff members before the current administration's cuts. The documents indicate FSA needs to hire an additional 334 full-time equivalent positions to meet operational targets, and has already brought on 52 new workers since September.
Rachel Gittleman, president of AFGE Local 252, which represents department employees, characterized the hiring as validation of the workforce's importance. A former FSA staffer herself, Gittleman stated, "What these job postings confirm is what we've known all along: Our jobs matter. And [our jobs] are needed in order for our federal student loan system to function adequately for borrowers."
The hiring initiative appears to contradict the administration's stated goal of dismantling the Department of Education. Ellen Keast, the department's press secretary for higher education, defended the decision by stating, "Returning education to the states and breaking up the federal education bureaucracy does not mean that critical programs won't continue." Keast confirmed that none of the new hires are former employees returning to their previous positions.
However, Gittleman noted that the positions themselves remain largely unchanged from those eliminated. "All of the jobs that we have seen postings for since September of last year can be traced to a job that was terminated or, in a certain few scenarios, a job that was subject to a deferred resignation or retirement program," she explained.
The staffing challenges have tangible consequences for borrowers. The Office of Federal Student Aid must implement new limits on student loans and two new repayment plans while managing the Free Application for Federal Student Aid. An investigation by the nonpartisan U.S. Government Accountability Office found that FSA stopped reviewing the accuracy of loan servicers' records and recordings of borrower calls immediately before last year's cuts.
Education Secretary Linda McMahon acknowledged in a public appearance last year that the reduction-in-force had been excessive in certain areas. "You always just want to cut fat. … Sometimes you cut into the muscle and you cut a little too deep. And we've brought some people back. Not a lot, but we did find that we cut a little bit deep," McMahon stated.
The Office for Civil Rights experienced a similar pattern of cuts, court-ordered reversals, and eventual rehiring as the office struggled to process civil rights complaints. A separate U.S. Government Accountability Office investigation determined that the unnecessary disruption at OCR cost taxpayers between $28.5 million and $38 million. The financial impact of recruiting, hiring, and training the new FSA employees remains unclear.
The hiring occurs amid McMahon's announcement of 10 new interagency agreements designed to transfer departmental responsibilities to other federal agencies. One such agreement would move FSA responsibilities to the Treasury Department. In a March letter, McMahon wrote, "For too long, Americans have shouldered the consequences of poor leadership and persistent mismanagement of our federal student aid portfolio. Today's actions reclaim integrity and accountability for you, the American people."
Despite the announced transfer, Keast clarified that the Treasury agreement is for "FSA to continue managing and improving delivery of these programs," suggesting Education Department employees will continue performing their current duties. During a recent Senate hearing, McMahon explained that under the Labor Department agreement, "it is the same people from the Department of Education that are at the Department of Labor. … It's dealing with the same people that you've known at the Department of Education that are located somewhere else."
Senator Tammy Baldwin, a Wisconsin Democrat, expressed confusion at this arrangement. "You are sending Department of Education employees to work at other agencies to administer the same programs from different buildings," Baldwin stated during the hearing.
A former FSA staffer who was laid off last year and is now applying for one of the new positions spoke with NPR on condition of anonymity. The individual noted that the job closely resembles their previous role. "We just want our jobs. We took an oath to serve the public, and that's what we want to do," the former staffer said.
The application process now includes new questions about an applicant's commitment to the Constitution and improving government efficiency. One question has already triggered legal action: "How would you help advance the President's Executive Orders and policy priorities in this role?" The former staffer expressed concern about the implications, stating, "I feel as though they want you to show loyalty to this administration."
The situation illustrates the practical challenges of dismantling a federal agency while maintaining essential services. As the Department of Education navigates this transition, the need for experienced personnel to manage student loans and financial aid continues unabated, regardless of which building houses the staff or which agency name appears on organizational charts.
