Survey: Administrators Anticipate ‘Disruption’ of Financial Aid Delivery
Credit: Houston Chronicle/ Hearst Newspapers/ Getty Images- The Department of Education has seen substantial layoffs since March.
- Financial aid administrators are worried that these layoffs could affect financial aid distribution.
- Nearly half said their primary concern relates to students receiving federal financial aid.
Financial aid administrators are concerned that cuts at the Department of Education (ED) will affect college students’ financial aid awards.
The National Association of Student Financial Aid Administrators (NASFAA) surveyed administrators from 909 colleges and universities across the U.S. Responses highlighted that administrators feel that ED’s downsizing — particularly mass layoffs at the department — could affect access to federal financial aid.
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“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,” NASFAA President and CEO Melanie Storey said in a statement.
“Students need accessible and consistent information about financial aid, and schools need clear guidance and support to effectively counsel their students. The department must act quickly to remedy the situation before the damage to schools and students is beyond repair.”
The survey asked respondents to rank what concerns them most about ED’s reduction in force notice from March.
“Impacts on students’ access to federal student aid” was the runaway top concern, with 48% ranking it atop their list. Another 14% ranked it as their second-highest concern.
Respondents were also concerned with potential processing delays or service interruptions. Approximately 11% placed this as their top worry, while 24% said it was their second-highest concern, and 19% placed it third.
NASFAA also accepted open-ended responses to its survey questions. Among those responses, NASFAA found that administrators are anticipating generalized disruption and instability over the coming months and years due to mass ED layoffs.
“Some institutions described the [reduction in force] as a systemic disruption affecting the entire aid infrastructure,” NASFAA wrote in its report. “These comments reflected a broader concern about operational reliability, accountability, and the long-term stability of the federal student aid system.”
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Respondents were similarly worried about the impact on students if ED were to shutter completely.
“Disruption of student aid delivery” was the top concern should the department close, with 48% of respondents placing this at the top of their list.
NASFAA’s survey may also shed light on why administrators are so worried about aid delivery. According to respondents, financial aid administrators have been fielding more questions than usual in recent weeks regarding ED or Federal Student Aid (FSA) services.
- Fewer inquiries than usual: 4%
- About the same: 31%
- Somewhat more inquiries than usual: 31%
- Significantly more inquiries than usual: 30%
- Unsure: 3%
Additionally, 59% of administrators said they’ve already experienced noticeable changes in responsiveness and processing timelines since March.
The future of ED layoffs is in doubt. On May 22, a federal judge blocked President Donald Trump’s executive order to dismantle ED. While the administration plans to appeal the decision, the court case could ultimately result in ED employees being reinstated.
NASFAA surveyed financial aid administrators from May 6-13. Responses came predominantly from administrators at nonprofit universities, community colleges, and public universities.