The U.S. Department of Education is facing a major shakeup, with staff cuts slashing nearly 50% of its workforce as of March 2025. With the Trump administration pushing to downsize or even dismantle the agency, millions of students, parents, and educators are left wondering: what’s next for student loans, the Free Application for Federal Student Aid (FAFSA), and Individualized Education Programs (IEPs)? Let’s unpack the potential ripple effects in a way that’s easy to grasp yet keeps you in the know.
Starting with student loans, the $1.6 trillion federal portfolio isn’t vanishing anytime soon-Congress would need to act to kill it outright. The Federal Student Aid (FSA) office, which oversees loans and disburses over $120 billion yearly, took a big hit from layoffs, losing key staff who manage everything from repayment plans to forgiveness programs.
“The concern is delays and inefficiencies,” a former FSA employee told USA Today, hinting at slower responses to borrower questions or loan adjustments. Programs like Public Service Loan Forgiveness could stall if the remaining team can’t keep up, though the loans themselves are safe for now, likely shifting to another agency if the department shutters.
FAFSA, the lifeline for 17 million students chasing grants and loans, is another hot topic. Legally, it’s tied to the Higher Education Act, so it won’t disappear-but the cuts could mess with its rollout. Last year’s glitchy FAFSA overhaul already frustrated applicants, and now, with fewer hands on deck, processing times might drag. “We’re on track for the 2026-27 FAFSA by October 1,” Acting Under Secretary James Bergeron said in a February statement, but staff shortages sparked a four-hour outage just days after the layoffs, per The Washington Post. Colleges might feel the pinch too, with delays in aid disbursement potentially leaving students scrambling.
Department of Education downsizing: Effects on loans and IEPs revealed
IEPs, which ensure kids with disabilities get a fair shot at education, are mandated by the Individuals with Disabilities Education Act (IDEA). That law’s not going anywhere, but enforcement could weaken. The Office for Civil Rights, down to a skeleton crew, handles discrimination complaints tied to IEPs and 504 plans.
“Families may face delays in resolving issues,” warned Brittany Coleman, a laid-off civil rights attorney, in a Washington Post interview. Less oversight might mean schools slip on accommodations, leaving parents to fight harder for their kids’ rights.
With the Education Department in flux, student loans, FAFSAs, and IEPs aren’t disappearing-but the road ahead could get bumpy. Staying informed is key as these changes unfold.
