The U.S. Department of Education is in the process of hiring around 380 new workers, despite the Trump administration’s plans to dismantle the agency. The Office of Federal Student Aid, which manages the nation’s $1.7 trillion student loan portfolio, is adding new staff to handle tasks such as communications with borrowers and repayment plans.
The hiring spree comes after the department lost roughly half its staff in a reduction-in-force last year. The Office of Federal Student Aid currently has around 731 full-time equivalent staff, down from 1,440 prior to the current administration. According to internal documents, the office needs to hire an additional 334 staff to meet its target.
Education Department Hiring
The new hires will be responsible for managing the federal student loan system, including the Free Application for Federal Student Aid. Rachel Gittleman, a former FSA staffer and current president of AFGE Local 252, says the hiring confirms that the jobs are essential to the functioning of the federal student loan system. The department’s press secretary, Ellen Keast, stated that critical programs will continue despite the planned dismantling of the agency.
The hiring process has already begun, with 52 new workers hired since September. However, it is unclear what the cost will be to recruit, hire, and train these new employees. The Office of Federal Student Aid is also rolling out new limits on student loans and two new repayment plans, adding to its workload.
An investigation by the U.S. Government Accountability Office found that the Office of Federal Student Aid stopped reviewing the accuracy of loan servicers’ records and recordings of borrower calls before last year’s cuts. Education Secretary Linda McMahon acknowledged that the reduction-in-force had gone too far in some areas, resulting in the need to rehire staff.
Implications and Next Steps
The hiring spree at the Education Department comes as the agency is attempting to offload its work to other federal agencies. The department has signed 10 new interagency agreements, including one with the Treasury Department to manage FSA responsibilities. However, the hiring of new staff suggests that Education Department employees will still be responsible for managing the federal student loan system.
The confusion over who will be doing the work of the Education Department was highlighted in a recent Senate hearing, where McMahon stated that the same people from the Department of Education would be working at the Department of Labor. The hiring spree and interagency agreements have raised questions about the future of the Education Department and its role in managing the federal student loan system.
The broader significance of the hiring spree lies in its implications for the management of the federal student loan system and the role of the Education Department in overseeing it. As the department navigates its planned dismantling, the hiring of new staff suggests that the agency’s work will continue, at least in the short term.
