Colleges Report Widespread Problems With Financial Aid Since Education Department Layoffs

"When the U.S. Department of Education abruptly dismissed half its workforce earlier this year, college officials worried the layoffs and buyouts would create a bottleneck that would hamper their ability to help students," USA Today reports.

... "In their correspondence with the Education Department, hundreds of schools reported widespread communication breakdowns, processing delays and an erosion of federal support services. The online survey was conducted in early May by the National Association of Student Financial Aid Administrators."

... "Melanie Storey, the president of the National Association of Student Financial Aid Administrators and a top official in the Education Department during Trump's first term and the Biden administration, said the survey results make clear that the Education Department layoffs are already hurting students and schools."

"'It was unrealistic and foolhardy to think slashing half of the department’s staff with no plan to redistribute this important work would not result in disruption and confusion for students,' she said in a statement. 'The Department must act quickly to remedy the situation before the damage to schools and students is beyond repair.'"

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: 5/21/2025

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