Protestors gather during a demonstration at the headquarters of the Department of Education, Friday, March 14, 2025, in Washington. (AP Photo)

The Trump administration’s sweeping cuts to the US Department of Education are raising alarms over the potential rise in waste, fraud, and abuse across US schools. Critics argue that these reductions, which have slashed the department’s workforce by half, will cripple the agency’s ability to oversee educational institutions, putting students and federal funding at risk.
In particular, experts warn that eliminating key offices and personnel who are responsible for investigating fraud and enforcing civil rights protections could create opportunities for predatory behavior. The administration’s push for “efficiency” through these cuts may, in fact, leave US schools vulnerable to unchecked misuse of federal resources.
Thousands of layoffs at Federal Student Aid office
One of the most significant casualties of the cuts is the Federal Student Aid (FSA) office, which is responsible for disbursing federal student loans and Pell Grants. More than 300 staff members were laid off in a dramatic reduction, which union officials say does not include non-union workers or supervisors. This downsizing has already shown its consequences, with a massive outage of the Free Application for Federal Student Aid (FAFSA) system the day after the layoffs.
These disruptions come on the heels of the Biden administration’s efforts to reform FAFSA processes, aimed at improving the system’s efficiency. Experts, including James Kvaal, Biden’s top higher education official, have expressed concern that the layoffs could reverse much of the progress made, leading to further issues with student loan processing and financial aid distribution.
Elimination of civil rights offices raises red flags
In addition to cuts at FSA, the Department of Education has also dismantled critical civil rights oversight offices. Seven regional offices that worked to ensure schools complied with federal civil rights laws have been shut down, and staff numbers in remaining offices have been dramatically reduced. Catherine Lhamon, former head of civil rights enforcement in the Biden administration, called the changes a “sham” and warned that this would slow down investigations into discrimination and abuse.
Without sufficient personnel to handle complaints, experts worry that students—particularly those from marginalized communities—will have less protection against discrimination and predatory practices.
Increased risk of fraud and abuse
Critics of the cuts argue that these drastic workforce reductions will enable fraud and abuse to flourish within educational institutions. Kevin Roberts, a laid-off institutional review specialist, stated that the lack of oversight could lead to the closure of colleges or their loss of eligibility for federal aid. With fewer inspectors and investigators, colleges may have the opportunity to misuse federal funds without facing consequences.
As the education system enters an uncertain new era, concerns about the effects of these cuts continue to grow, especially as schools and federal agencies struggle to navigate the challenges of a significantly reduced workforce.