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Home / News / Trump Moves To Dismantle Education Department

Trump Moves To Dismantle Education Department

Updated: March 12, 2025 By Robert Farrington | < 1 Min Read Leave a Comment

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Eliminate The Department of Education Infographic | Source: The College Investor
Student Loan Payment Pause Be Extended

Key Points

  • The Department of Education is cutting roughly 50% of its staff, with roughly 325 employees in Federal Student Aid.
  • All offices will be closed for 48 hours, with layoffs affecting over 1,300 employees.
  • This move aligns with President Trump’s broader plan to eliminate the agency.

The Department of Education is planning the largest round of layoffs in its history, slashing nearly half of its workforce in a move that officials say is part of a broader effort to reduce federal involvement in education.

Starting Tuesday evening, 1,300 employees were notified of their termination, with their employment officially ending in 90 days. An additional 300 workers opted for buyouts worth up to $25,000, and 260 others accepted deferred resignation packages.

Education Secretary Linda McMahon defended the decision, stating on Twitter/X the department is “committed to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers.”

Despite assurances that federal student aid operations will remain unaffected (since they are mandated by Congress), experts and unions are raising concerns over how the agency will function with such a drastic reduction in staff.

Today’s RIF reflects our commitment to efficiency, accountability, and ensuring that resources are directed where they matter most: to students, parents, and teachers.

— Secretary Linda McMahon (@EDSecMcMahon) March 11, 2025

Office Closures And Impact

To manage the transition, all Department of Education offices will be closed for 48 hours, with employees working remotely. Offices in San Francisco and New York will be shut down permanently, with plans to consolidate Washington operations into a single office.

It's likely the biggest cuts will likely target K-12 education programs and programs related to DEI, but it's likely that other departments will also be affected. Critics argue that this reduction could severely impact federal oversight, including civil rights investigations, special education funding, and support for low-income schools.

A spokesperson for the agency told reporters that the restructuring was necessary to eliminate “redundant operations” and ensure that education is “returned to states and local communities.”

Who Was Impacted?

A review of a list of impacted employees shows that roughly 325 were in Federal Student Aid (FSA), with 90 being directly related to college audit resolution, financial analysis, program reviews, technical assistance, and school and program eligibility/recertification.

Over 40 were involved in oversight of the student loan servicers and other vendor partners, including loan analysts and others that oversee the federal student loan program and their partners.

Other troubling large impacted areas include:

  • Over 100 employees from Institute of Educational Science (IES), which is the primary data gathering and analysis organization for educations statistics in the United States.
  • Over 240 employees from the Office of Civil Rights (which has been discussed integrating into the Department of Justice)
  • Roughly 40 attorneys in the Office of General Counsel
  • Roughly 40 from the Office of Finance and Operations, which manages grant programs
  • Roughly 50 from the Office of Elementary and Secondary Education

Trump's Plans To Eliminate The Department of Education

The mass layoffs come as President Trump pushes for a full dismantling of the Department of Education - one of his key campaign promises.

Last week, White House officials confirmed that an executive order is in the works that will formally begin the process of eliminating the agency altogether.

While Congress would need to approve the full closure of the department, Tuesday’s layoffs represent a major step toward shrinking federal oversight of education and shifting responsibility back to state governments.

Some lawmakers and unions have strongly opposed the cuts, arguing that dismantling the department could harm students who rely on federal programs such as Pell Grants, Title I funding, and special education services.

Rep. Mark Takano (D-CA) warned that “This is a blatant attack on public schools and students."

Aissa Canchola Bañez, Policy Director at the Student Borrower Protection Center, said in a statement "These civil servants were working to ensure students and families can pay for college, working to protect students and families from predatory for-profit colleges, and holding servicers accountable for pushing millions further into debt. Today’s announcement makes it crystal clear—President Trump and Secretary McMahon could not care less about making sure students, borrowers, and working families get the support and resources they need, and instead are intent on inflicting mass chaos and disruption across our education system."

With more cuts expected in the coming months, the future of federal education policy remains uncertain.

Related: What Abolishing The Department Of Education Would Look Like

Eliminate The Department of Education Infographic | Source: The College Investor

What To Expect Moving Forward

While the true impact of these cuts won't be known for several weeks, it does have Americans concerned. The Department of Education handles many functions - from overseeing K-12 education, to handling FAFSA and federal student aid for families applying to college right now, to managing the massive $1.6 trillion student loan program.

It appears the most immediate impact will be on elementary education, oversight, and enforcement.

For families that are applying to college and relying on FAFSA money - such as Pell Grants and Direct Student Loans - there is uncertainty. While many of these functions are automated and a lot of the work is handled by the colleges, there is still oversight and administration required at the Department of Education. Reducing the workforce in this area could disrupt the upcoming college admissions cycle - especially if there are financial aid delays.

For those with student loans, many functions will operate normally since they're handled by loan servicers. However, there could be delays in items that require the Department of Education, such as PSLF Buyback, final forgiveness approvals for PSLF, consolidation applications, and more. The full extent of the issue will take months to be known.

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Editor's Note: This article was updated to reflected new information on which departments were impacted.

Editor: Colin Graves

Robert Farrington
Robert Farrington

Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.

Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.

He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.

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