Federal Workers Union Files Grievance for Firing Federal Student Aid Employees
By Maria Carrasco, NASFAA Staff Reporter
The American Federation of Government Employees, a union representing government employees, filed a grievance on Thursday against the Department of Education (ED) for the reduction in force (RIF) of the Office of Federal Student Aid (FSA).
The American Federation of Government Employees, along with Student Defense, who is representing the union, argued in its grievance that FSA has the authority to make its own personnel firing decisions since FSA has statutorily-guaranteed independence.
Specifically, the organizations noted that FSA operates as a performance-based organization within ED, where Congress granted FSA “independence” from the department. That independence is in respect to budget allocations, expenditures, and personnel decisions, the organizations wrote.
Because of that independence, the organizations argued that FSA had “no decision-making authority” when it came to ED’s RIF plans. Earlier this year, ED announced its RIF plans where nearly 50% of its staff would be laid off. The department’s RIF was met with legal challenges, which are still making their way through the court system.
As a result of the department’s RIF, FSA was instructed to fire approximately 700 employees in its office. This grievance filed by the American Federation of Government Employees seeks to reinstate these fired FSA employees, award back-pay, and require the department to comply with the collective bargaining agreement.
“Congress designed Federal Student Aid to be free from political overreach, and the Secretary of Education does not have the authority to instruct FSA leadership to carry out a RIF,” Student Defense Chief Counsel Dan Zibel said in a statement. “Not only does this RIF harm countless employees, but it will have a catastrophic impact on students looking for a pathway to higher education, as well for those burdened by student debt.”
Publication Date: 8/4/2025
Jonathan H | 8/4/2025 11:42:56 AM
While it's encouraging to hear some processes, like audits, recertifications, and program reviews, moving more quickly, there's a real concern about what's not being reviewed. Oversight exists for a reason, and when it's scaled back too far, we run the risk of increased fraud, waste, and abuse, ultimately burdening the American taxpayer.
There has to be a balance. Ideally, FSA can refine its approach in a way that eases unnecessary burdens on institutions while still protecting public funds. Every administration talks about reducing regulations, yet over time, what began as well-intentioned reform has evolved into a cumbersome and often contradictory regulatory environment, leaving institutions to navigate a constantly shifting pendulum.
Most importantly, students; the intended beneficiaries of these programs, should remain the central focus of all efforts.
Lee Ann T | 8/4/2025 11:41:44 AM
Jeff A. you are spot on! I made a call to FSA last week which a real person picked up within 3 minutes and the problem was then resolved with the FAFSA. (That has never happened in 35+ years) More then often it was recording with a 30 minutes wait. Refreshing is a great word to use in describing their functionality with the RIF. Keep up the great work ED!
Jeff A | 8/4/2025 9:54:17 AM
with the RIF it has been refreshing how quickly audits, e-apps, recerts, and program reviews are being resolved. They are taking a risk-based approach rather than extensivvely hassling colleges that are competentlly administering FA programs. It was about time for a fair and coomon sense approach to oversight was instilled. A refreshing step towards reducing bureaucracy.
You must be logged in to comment on this page.