FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Senior Director of Strategic Communications
[email protected]

WASHINGTON, D.C., MAY 21, 2025 — Financial aid offices at colleges and universities across the country are reporting operational delays, breakdowns in federal support systems, and an erosion of communication channels with the U.S. Department of Education (ED) following massive layoffs in March and amid plans by the Trump administration to dissolve the federal agency, according to a survey released today by the National Association of Student Financial Aid Administrators (NASFAA). 

The results of the survey, which draw on the responses of approximately 900 unique institutions representing all sectors of U.S. higher education, underscore how the reduction in force that nearly halved the Department of Education’s staff is already hindering students’ ability to access and understand federal student aid. The financial aid professionals surveyed shared a number of concerns related to the layoffs and potential closure of ED — 59% said they have experienced noticeable changes in responsiveness, communication, or processing timelines from ED’s Office of Federal Student Aid (FSA) since March. 

“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,” said NASFAA President & CEO Melanie Storey. “These survey results make it clear that we already see the harm of the layoffs. 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 respondents also noted widespread slowdowns in federal processing, intensified pressures on staffing and workload in financial aid offices, and concerns about disruption to student aid delivery, institutional oversight, and clear federal guidance should the Department eventually close. However, the chief concern among the financial aid professionals surveyed is the possibility that federal instability will undermine students’ access to aid and erode trust in the higher education system.

Other key findings include: 

• Communication breakdowns affect students: 42% of institutions reported students are experiencing issues with federal loan servicing, such as delays, misinformation, or unresolved inquiries. Additionally, 47% said students are receiving confusing or incomplete information from ED/FSA due to delayed or missing communication.

• Increased volume of student inquiries: 60% of institutions noted that they have received more inquiries from students than usual related to ED/FSA services in the last 30 days.

• Concerns about ED’s future are widespread and deep: 63% of institutions are “very concerned” about the potential closure of ED, with another 28% “somewhat concerned.” 

• Reduced responsiveness to institutional inquiries: Many respondents noted longer wait times for phone support and delays in receiving responses to email inquiries. Some institutions reported receiving no replies at all to submitted questions or support requests, raising concerns about the availability of federal contacts.

NASFAA policy experts are available to speak to members of the media about the results of this survey. To set up an interview, please email [email protected].

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About NASFAA

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.