Mass Layoffs at the Department of Education: What It Means for Borrowers and How to Stay on Track

In a stunning move, the Trump administration has cut half of the Department of Education’s staff, drastically reducing the workforce responsible for student loan servicing, financial aid processing, and borrower protections. These cuts are already causing disruptions, leaving millions of borrowers uncertain about their repayment options, loan forgiveness progress, and the future of programs like IDR, PSLF, and SAVE.

For borrowers relying on the Federal Student Aid (FSA) office to resolve errors, recertify income, or process forgiveness applications, the road ahead could be much slower. Loan servicing issues that once took weeks to fix may now take months or longer, with fewer staff available to handle inquiries and complaints. 

With so much uncertainty, staying informed and proactive is more important than ever. Here’s what’s happening, how these cuts could impact borrowers, and what you can do to stay ahead. 

How the Layoffs Impact Borrowers

The Department of Education is responsible for overseeing federal student loan programs, ensuring servicers comply with regulations, and processing forgiveness applications. With thousands of staff now gone, major disruptions are already happening: 

1. Longer Processing Times – Borrowers needing IDR recertifications, PSLF payment tracking, or forgiveness applications may experience severe delays. The backlog is expected to grow significantly, making it harder to get timely assistance. 

2. Fewer Paths to Resolve Errors – Previously, borrowers could escalate issues through the CFPB or FSA complaint process. Now, FSA is the only option, and with fewer employees handling cases, borrowers may wait months for resolution. 

3. Website and System Failures – The layoffs have hit IT and technology teams hard, leading to outages on StudentAid.gov and FAFSA processing issues. Some borrowers are already experiencing difficulties accessing their accounts or completing required forms. 

4. Potential Funding and Policy Shifts – With the administration focused on reducing federal involvement in education, additional cuts to loan forgiveness programs or changes to repayment plans may be on the horizon. 
   

What Borrowers Should Do Now & How TitanPrep Can Help

With fewer resources available and longer wait times expected, staying ahead of student loan changes is more important than ever—but you don’t have to do it alone. 

✔ Stay on Top of Your Loan Status – Processing delays could make tracking payments and forgiveness progress more difficult. TitanPrep helps ensure your records are accurate and up to date, so you don’t have to rely on your servicer alone. 

✔ Recertify Early – If you’re enrolled in an IDR plan, submitting your recertification as early as possible can help avoid disruptions. TitanPrep can guide you through the process, ensuring your paperwork is correct and submitted on time. 

✔ Verify Your PSLF Eligibility – Policy changes could affect PSLF rules, so it’s critical to confirm your employment certification and qualifying payments now. We help you navigate the process, so your progress isn’t lost. 

✔ Prepare for the Unexpected – With SAVE, PSLF, and IDR programs under scrutiny, having a backup plan is essential. TitanPrep provides expert insights into repayment strategies, ensuring you’re in the best position no matter what happens next. 

Instead of navigating these challenges alone, TitanPrep is here to help you stay on track, minimize disruptions, and make informed financial decisions—so you can move forward with confidence. Call us today at +1 (800) 547-2258 to get started.