Monday, October 13, 2025

Monetary help directors report disruptions since Schooling Division layoffs

Dive Temporary:

  • A big majority of monetary help directors, 72%, say they’ve skilled “noticeable modifications” within the Federal Scholar Support workplace’s communications, responsiveness and processing timelines for the reason that U.S. Division of Schooling’s mass layoffs in March.

  • That’s based on a July survey carried out by the Nationwide Affiliation of Scholar Monetary Support Directors. The outcomes additionally present that “federal assist channels for college students are breaking down,” together with by points with name facilities, NASFAA stated.

  • These disruptions are hampering schools’ potential to help college students, it stated. “Until federal service channels stabilize, the help system dangers changing into much less accessible, much less predictable, and fewer trusted by the very college students it’s supposed to serve,” it added.

Dive Perception:

When the Schooling Division moved to put off roughly half its workers in March, pupil advocates voiced considerations that the company wouldn’t have sufficient staff to perform core featurestogether with monetary help companies.

NASFAA’s survey builds on these considerations. The survey discovered that larger shares of monetary help directors surveyed in July stated they’re experiencing delays and a scarcity of communication from the Schooling Division than these polled simply two months earlier than.

As an example, 59% of officers surveyed in Could stated they’d skilled disruptions within the Federal Scholar Support workplace’s responsiveness, communication and processing timelines — a quantity that has since jumped to 72%.

Ellen Keast, deputy press secretary on the Schooling Division, sharply rebuked the survey.

“It is a humiliation for NASFAA to launch a ‘survey’ that blatantly parrots falsehoods and isn’t consultant of the upper training group nor the American folks’s overwhelming cost for change,” Keast stated in an emailed assertion Wednesday. “Clearly, NASFAA is peddling a false narrative to protect the established order.”

An Schooling Division official accused the survey of getting methodological shortcomings. The official pointed to the survey’s response charge — accomplished by over 549 establishments — saying that represents lower than 10% of the roughly 5,800 schools that work with Federal Scholar Support.

The official additionally stated questions spurred respondents to report unfavourable experiences and that these polled have been overrepresented by directors working at nonprofit and public four-year schools, which the company accused as being the more than likely to oppose the Trump administration.

Moreover, the official stated the mass layoffs didn’t influence FAFSA workers or Federal Scholar Support’s potential to serve prospects.

Melanie Storey, president and CEO of NASFAA, stated in a press release that the survey displays “the actual, on a regular basis experiences of monetary help professionals.”

“To dismiss these considerations as fabricated or political undermines the experience of these working straight with college students on daily basis, desirous to ship on the promise of postsecondary training, and exhibits that the administration just isn’t considering working with consultants within the area to attain the perfect outcomes for college students; as an alternative, it’s targeted on advancing its personal agenda,” Storey stated.

Within the survey, 32% of respondents stated they’ve skilled processing delays for the Free Software for Federal Scholar Support since Could.

Earlier this month, the Schooling Division started beta-testing for the 2026-27 FAFSA type. To this point, greater than 1,000 college students have accomplished the shape, based on a division official.

In the meantime, 49% of monetary help directors have skilled processing delays with the e-App, the applying schools undergo the Schooling Division to take part in federal monetary help applications. Amongst schools that submitted the e-App, 63% stated in July that it nonetheless had not been processed.

Extra college students are reaching out to their monetary help places of work, based on the survey. Sixty % of directors stated they’ve seen spikes in pupil questions in regards to the Schooling Division’s companies within the July ballot, in contrast with 45% who stated the identical in Could.

Whereas a number of respondents stated college students have been confused in regards to the FAFSA course of or federal help, not all officers specified whether or not the inquiries have been associated to the Schooling Division’s mass layoffs or different latest federal modifications.

Republicans lately made sweeping modifications to the coed mortgage system by their large home coverage invoice signed into legislation in July. That features consolidating the coed mortgage reimbursement applications into simply two choices and phasing out Grad PLUS loans, which permit graduate {and professional} college students to borrow as much as the price of attendance.

Critics have famous that the Schooling Division should perform the huge coverage modifications mandated by the invoice with about half the workforce it had earlier than President Donald Trump retook workplace.

U.S. Schooling Secretary Linda McMahon has framed the layoffs as step one to Trump’s objective of eliminating the Schooling Division and shifting its duties elsewhere — a change that will require congressional approval.

A federal choose initially blocked the Schooling Division’s mass layoffs, however the U.S. Supreme Courtroom lifted that order in July whereas litigation difficult their legality proceeds.

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