Department of Education Initiates Reduction in Force
On March 11, 2025, the Department of Education announced in a press release that as of March 11th, it was initiating a reduction in force (RIF) that impacted almost 50 percent of the Department’s workforce. Impacted Department staff will be placed on administrative leave beginning Friday, March 21st. All impacted employees will receive full pay and benefits until June 9th, as well as substantial severance pay, or retirement benefits based upon their length of service.
Secretary of Education Linda McMahon said: “Today’s reduction in force reflects the Department of Education’s commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers.”
The press release stated that ED will continue to deliver on all statutory programs that fall under the agency’s purview, including formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking.
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/us-department-of-education-initiates-reduction-force.
Senate Confirms Linda McMahon
On March 3, 2025, the Senate confirmed Linda McMahon for Secretary of Education by a vote of 51 to 45. Last month, the HELP Committee held a hearing on Ms. McMahon’s nomination during which Senators on the Committee asked Ms. McMahon questions regarding President Trump’s efforts to dismantle the U.S. Department of Education, her views on education-related topics, such as student loans; and the recent efforts by the Department of Government Efficiency (DOGE) to access federal student aid data, freeze Federal funding and lay off employees at ED.
Chair of the HELP Committee, Senator Bill Cassidy, MD (R-LA) released a press release saying: “Under the Biden-Harris administration, the Department of Education focused on everything but student success,” said Dr. Cassidy. “We need a strong leader at the Department who will get our education system back on track. Secretary McMahon is the right person for the job.”
A copy of the Senator’s press release is found at:
Secretary McMahon will take over a department that has already undergone significant changes. DOGE has made cuts of $350 million to the agency’s research grants and contracts that officials said promoted liberal ideology. They also terminated 29 DEI training grants totaling $101 million and canceled another 89 contracts worth $881 million. It also set up a tip line for people to report allegations of discriminatory diversity, equity, and inclusion (DEI) efforts in school. The Trump Administration is also trying to thin the Department’s ranks by offering a one-time buyout incentive of $25,000 to resign or retire. The deadline for the one-time buyout was 11:59 p.m. on March 3, 2025.
Secretary McMahon Outlines Final Mission
On March 3, 2025, Secretary of Education Linda McMahon described the Department of Education’s final mission in a speech following her taking the oath of office. Secretary McMahon said that after President Trump’s inauguration, he “signed a slate of executive orders to keep his promises: combating critical race theory, DEI, gender ideology, discrimination in admissions, promoting school choice for every child, and restoring patriotic education and civics. He has also been focused on eliminating waste, red tape, and harmful programs in the federal government. The Department of Education’s role in this new era of accountability is to restore the rightful role of state oversight in education and to end the overreach from Washington.” She said that “we must start thinking about our final mission at the department as an overhaul – a last chance to restore the culture of liberty and excellence that made American education great.”
Secretary McMahon described her convictions:
- Parents are the primary decision makers in their children’s education.
- Taxpayer-funded education should refocus on meaningful learning in math, reading, science, and history and not DEI programs.
- Postsecondary education should be a path to a well-paying career aligned with workforce needs.
She concluded her speech by indicating that the elimination of bureaucracy should “free us.” “This is our opportunity to perform one final unforgettable public service to future generations of students.”
A copy of the full speech is found at: https://www.ed.gov/about/news/speech/secretary-mcmahon-our-departments-final-mission.
ED’s OCR Sends Letters to 60 Universities Under Investigation for Antisemitic Discrimination
On March 10, 2025, the Department of Education’s (ED) Office of Civil Rights (OCR) sent letters to 60 institutions of higher education warning them of potential enforcement actions if they do not fulfill their obligations under Title VI of the Civil Rights Act to protect Jewish students, including uninterrupted access to campus facilities and educational opportunities. The letters were sent to all 60 universities that are presently under investigation for Title VI violations relating to antisemitic harassment and discrimination.
Secretary of Education Linda McMahon said: “U.S. colleges and universities benefit from enormous public investments by U.S. taxpayers. That support is a privilege, and it is contingent on scrupulous adherence to federal antidiscrimination laws.”
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/us-department-of-educations-office-civil-rights-sends-letters-60-universities-under-investigation-antisemitic-discrimination-and-harassment.
Trump Prepares an Executive Order Calling for the Closing of the Department of Education
On March 6, 2025, media outlets reported that President Trump was likely to sign an Executive Order (EO) that would have called for the closing of the Department of Education. The reporting came after Linda McMahon was confirmed as Secretary of Education. The draft EO said: “Sec. 2. The Secretary of Education shall, to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities.”
President Trump Signs Executive Order Limiting Borrower Eligibility under the Public Service Loan Forgiveness
On March 7, 2025, President Trump signed an Executive Order (EO) titled, “Restoring Public Service Loan Forgiveness.” The EO’s objective is to limit the number of borrowers who are eligible under the Public Service Loan Forgiveness (PSLF) program. The EO directs the Secretary of Education, in coordination with the Secretary of the Treasury, to propose revisions to the PSLF program that ensure the definition of “public service” excludes organizations that engage in activities that have a “substantial illegal” purpose, such as supporting terrorism or child abuse.
A copy of the EO is found at: https://www.whitehouse.gov/presidential-actions/2025/03/restoring-public-service-loan-forgiveness/.
Following the release of the EO, the Department of Education updated its Public Service Loan Forgiveness website to say:
“We’re working to apply changes announced in April 2022, as part of the payment count adjustment. These changes mean that borrowers with federally-managed loans may still see an increase in their payment counts toward income-driven repayment forgiveness and PSLF.”
The added language is found at:
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service.
President Trump Considers Options to Transfer Management of Federal Student Loans
On March 6, 2025, in response to a question from a reporter in the Oval Office, President Trump said that he is considering options to transfer management of Federal student loans to the Department of the Treasury or other agencies as part of his efforts to shut down the Department of Education. He said: “Federal student loans will be brought to either Treasury or Small Business Administration or Commerce.” However, moving the federal student loan portfolio out of the Department would require congressional action.
Politico Reports ED Reduced FSA Staff who Handled Complaints Filed with FSA
On March 5, 2025, Politico reported that the Department of Education has reportedly fired eight of 21 staffers who were part of a team to handle complaints filed to the Office of Student Financial Aid (FSA). The article reported that FSA started the process of moving the online button that leads users to submit a complaint from the top of the webpage to the footer and renaming it “submit feedback.” The “rebranding” of the complaint button was done with the objective of reducing the volume of complaints received by FSA. FSA received 289,523 complaints in FY 2024 as compared to 122,632 complaints in FY 2023.
According to Politico, among the eight staffers fired, two staffers reviewed borrower defense applications under Sweet v. Cardona. The article reported that the two staffers had indicated that they were reviewing 200-300 cases a week and had a backlog of over 4,000 emails.
DOJ, HHS, ED, and GSA Announce Initial Cancelation of Grants and Contracts to Columbia University Worth $400 Million
On March 7, 2025, the Department of Justice (DOJ), the Department of Health and Human Services (HHS), the Department of Education (ED), and the General Services Administration (GSA) announced the immediate cancelation of about $400 million in federal grants and contracts to Columbia University due to the school’s continued inaction in the face of persistent harassment of Jewish students. These cancelations represent the first round of action, and additional cancelations are expected.
Secretary of Education Linda McMahon said: “Universities must comply with all federal antidiscrimination laws if they are going to receive federal funding. For too long, Columbia has abandoned that obligation to Jewish students studying on its campus. Today, we demonstrate to Columbia and other universities that we will not tolerate their appalling inaction any longer.”
A copy of the press release is found at: https://www.ed.gov/about/news/press-release/doj-hhs-ed-and-gsa-announce-initial-cancelation-of-grants-and-contracts-columbia-university-worth-400-million.
Justice Department Targets ABA for Diversity Rule
On March 5, 2025, Bloomberg News reported that the Department of Justice is urging the American Bar Association (ABA) to repeal its diversity requirements for law schools or risk losing its recognition status as an accrediting agency. ABA responded that the ABA would temporarily suspend enforcement of a rule requiring law schools to diversify faculty and student populations.
Federal District Judge Blocks ED and OPM from Sharing Personal Information with DOGE; Another Federal Judge Delines to Block DOGE from Accessing Student Loan Data
On February 24, 2025, U.S. District Judge Deborah Boardman from the District of Maryland blocked the Department of Education (ED) and the Office of Personnel Management (OPM) from sharing private information with the Department of Government Efficiency (DOGE), saying the decision to grant DOGE access appears to breach federal privacy laws. Judge Boardman said that DOGE affiliates have been granted access to records that contain some of the plaintiffs’ most sensitive data, and the continuing, unauthorized disclosure of plaintiffs’ sensitive personal information to DOGE affiliates is irreparable harm. The ruling grants a two-week restraining order.
On the other hand, on February 17, 2025, Federal Judge Randolph Moss, appointed by President Obama, declined to issue an order blocking Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive student loan data. The order sought by the University of California Student Association (UCSA) would have immediately blocked DOGE officials from accessing student loan data. However, Judge Moss ruled that there is no evidence to suggest that access would result in the disclosure of “any sensitive personal information” about the borrowers.
There will likely be more cases with a final decision resting with the Supreme Court.
8th Circuit Court of Appeals Rules that Entire SAVE Rule Should be Enjoined
On February 18, 2025, the 8th Circuit Court of Appeals issued a decision in the case originally filed by the State of Missouri and other states against the Biden Administration’s Saving on a Valuable Education (SAVE) rule. The District Court had enjoined a portion of the SAVE rule. The Court of Appeals’ decision affirms the District Court’s preliminary injunction and instructs the District Court to enjoin the entire SAVE rule and the subsequent rule that the Biden Administration put out to reinstate the REPAYE repayment plan on a temporary basis. A major element of the decision of the Court of Appeals is that the “Secretary lacks the power to authorize loan forgiveness in an ICR plan.”
The Department of Education has added a banner announcement on StudentAid.gov, indicating that it has taken down the applications for income-driven repayment (IDR) plans and loan consolidation due to an injunction to block implementation of the SAVE repayment plan.
The link is: https://studentaid.gov/manage-loans/repayment/plans.
“A federal court issued an injunction preventing the U.S. Department of Education from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other IDR plans, including—for example—SAVE’s monthly payment formula and loan forgiveness under the SAVE, PAYE, and ICR Plans. We will continue to update StudentAid.gov/saveaction with more information.”
Federal Judge Blocks CFPB from Firing Student Loan Ombudsman
On February 14, 2025, a Federal Judge has temporarily prevented the Trump Administration from dismissing the Consumer Financial Protection Bureau’s (CFPB) top official providing oversight of the student loan industry. The National Treasury Employees Union filed a lawsuit to block what it describes as an “ongoing effort to dismantle the CFPB.” One of the persons that was affected was Julia Barnard, the student loan ombudsman, a position required by law. The student loan ombudsman is responsible for overseeing private student loans, loan servicers, and other entities involved in the federal loan program.
FSA Announces Update on Identity Verification and Reminder of Institutional Requirements for Reporting Fraud
On February 24, 2025, Federal Student Aid (FSA) sent an Electronic Announcement (APP-25-07) providing an update to identity verification and reminding schools and other partners of guidance for reporting fraud and required reporting related to the administration of Title IV programs.
On February 23, 2025, the Department of Education resumed flagging applicants that meet defined criteria for potentially fraudulent activity, including applicants suspected to be assuming another individual’s identity when submitting a 2024-2025 and 2025-2026 FAFSA form. In these cases, schools will receive newly generated ISIRs with applicable Verification Tracking flags, which will require schools to complete the V4 or V5 verification process to verify the student’s identity and determine their eligibility for Title IV funds. Schools must complete verification for these students before disbursing Title IV funds and may not make subsequent disbursements of Title IV funds for students that are selected for verification after a disbursement has occurred.
Schools are also reminded of guidance for reporting fraud and required reporting related to the administration of Title IV programs, as listed in 34 C.F.R. 668.16(g). In general, if a school suspects that a student, employee, or other individual connected to your organization has misreported information or altered documentation to fraudulently obtain federal funds, the school is required to report these cases to the Office of Inspector General.
A copy of the Electronic Announcement is found at: https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-02-24/update-identity-verification-and-reminder-institutional-requirements-reporting-fraud.
FSA Distributes FY 2022 Draft Cohort Default Rates (CDR)
On February 24, 2025, Federal Student Aid (FSA) issued an Electronic Announcement (LOANS-25-03) announcing that the Department of Education distributed the FY 2022 draft cohort default rate (CDR) notification packages to all eligible domestic and foreign schools only.
The Electronic Announcement provided information about the distribution of the draft rates and the begin date for appealing the draft rates, which begins on March 4, 2025, for all schools.
A copy of the Electronic Announcement is found at:
010E D Issues DCL Clarifying the Nondiscrimination Obligations of Schools that Receive Federal Financial Assistance; ED Issues FAQs in Connection with DCL
On February 14, 2025, the Acting Assistant Secretary for Civil Rights Craig Trainor sent a Dear Colleague Letter (DCL) clarifying and reaffirming the nondiscrimination obligations of schools and other entities that receive federal financial assistance from the Department of Education. The letter explains existing legal requirements under Title VI of the Civil Rights Act of 1964, the Equal Protection Clause of the U.S. Constitution, and other relevant authorities.
The DCL described the Supreme Court’s 2023 decision in Students for Fair Admissions v. Harbard (SFFA), which clarified that the use of racial preferences in college admissions is unlawful. The DCL went on to say that while SFFA addressed admissions decisions, the Supreme Court’s holding applies more broadly. “Federal law thus prohibits covered entities from using race in decisions pertaining to admissions, hiring, promotion, compensation, financial aid, scholarship, prizes, administrative support, discipline, housing, graduation ceremonies, and all other aspects of student, academic, and campus life. Put simply, educational institutions may neither separate or segregate students based on race, nor distribute benefits or burdens based on race.”
The DCL concludes that the Department will “vigorously enforce the law on equal terms as to all preschool, elementary, secondary, and postsecondary educational institutions, as well as state educational agencies, that receive financial assistance.” The Department intends to take appropriate measures to assess compliance with the applicable statutes and regulations beginning no later than 14 days from today’s date, including antidiscrimination requirements that are a condition of receiving federal funding.
A copy of the DCL is found at: https://www.ed.gov/media/document/dear-colleague-letter-sffa-v-harvard-109506.pdf.
On March 1, 2025, the Department released Frequently Asked Questions (FAQs) that respond to questions that may arise from the DCL.
A copy of the press release, which contains the FAQs, is found at: