The Trump administration’s intentions to dismantle the U.S. Department of Education encountered obstacles due to the department’s essential functions. Despite significant staff reductions last year, the department’s student loan office is actively hiring. According to NPR-sourced documents, the Office of Federal Student Aid (FSA) plans to add approximately 380 new employees.
FSA is vital for managing the nation’s $1.7 trillion student loan portfolio. It oversees borrower communications, repayment plans, and the Free Application for Federal Student Aid (FAFSA). During an internal meeting, employees learned that FSA has 731 full-time equivalent staff (FTEs), half of its former workforce of 1,440. It needs an additional 334 FTEs to meet the target, with 52 new hires since September.
Former FSA staffer Rachel Gittleman, now president of AFGE Local 252, emphasized the significance of these jobs in maintaining the federal student loan system. Despite last year’s layoffs, the department continues hiring to ensure crucial programs persist. Ellen Keast, the department’s press secretary, affirmed that education functions are being retained.
The resumption of hiring was first noted by Politico, and Keast confirmed that new hires are not rehires. Gittleman observed that these positions mirror those terminated or subject to deferred resignation/retirement. The recruitment, hiring, and training costs remain unspecified as FSA manages loan limits, repayment plans, and additional tasks.
Before last year’s cuts, FSA halted reviews of loan servicers’ record accuracy, as identified by the Government Accountability Office (GAO). Education Secretary Linda McMahon recognized that some cuts were excessive, stating, “Sometimes you cut into the muscle and you cut a little too deep.” Similar circumstances affected the Office for Civil Rights (OCR), leading to costly reversals, according to a GAO report.
“Aren’t student loans moving to the Treasury Department?”
Amid hiring, McMahon promoted ten interagency agreements to shift departmental tasks, including transferring FSA responsibilities to the Treasury Department. Her letter articulated the necessity of this partnership to rectify past mismanagement. However, hiring suggests continued Education Department staff involvement.
Keast affirmed FSA’s role in managing and enhancing program delivery in collaboration with Treasury. Confusion over agency roles emerged at a Senate hearing, as McMahon explained that department employees continue performing duties at other agencies, prompting queries from Sen. Tammy Baldwin.
Another former FSA staffer, seeking reemployment, described job postings resembling previous roles predating the workforce reduction. Application changes include queries on constitutional commitment and advancing the administration’s priorities, sparking controversy over perceived loyalty expectations.

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