"An internal list shows that about 10% of the Federal Student Aid (FSA) workforce — which oversees student loans — has accepted buyouts to leave their positions. Fewer workers processing financial aid might mean disruptions and delays to students getting their money," Best Colleges reports. 

..."In a conversation with BestColleges, Karen McCarthy, vice president of public policy and federal relations with the National Association of Student Financial Aid Administrators (NASFAA), warned of potential disruptions to student aid if the FSA workforce were to diminish.

McCarthy said NASFAA is concerned about the impacts of federal employees resigning or being laid off, as this might impact or disrupt the flow and distribution of financial aid to students if there are fewer staff members at ED or FSA. She said programs need funding and human resources to be carried out successfully.

McCarthy said students don’t have to do anything different regarding aid this year than previous years. She recommends students still fill out their FAFSA forms and fill them out early. As further staff reductions start to unfold, she also suggests students check in with their financial aid offices.

However, McCarthy cautions students not to panic about the Trump administration’s desire to disband ED or over the status of their federal financial aid.

'It is not the time to panic,' McCarthy said. 'There is no current threat to the existence of these federal aid programs or the current funding for those aid programs.'

She reminds students that because federal aid resources like the Pell Grant are established by Congress, it would be “legally impossible” for an executive order to end them.

Additionally, she said that abolishing federal aid has no support in Congress nor has the presidential administration alluded to this, so it is not likely to go away."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 2/26/2025