FAFSA Outage Exposes Risks of Trump’s Education Staff Layoffs

FAFSA Outage Exposes Risks of Trump’s Education Staff Layoffs \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ A major outage hit StudentAid.gov on Wednesday, preventing students from accessing FAFSA applications for federal financial aid. The breakdown comes just one day after President Donald Trump’s administration cut half of the Department of Education’s workforce, including the FAFSA technology team. While the Education Department cited “planned maintenance”, reports indicate that mass layoffs may have crippled troubleshooting efforts, raising concerns about the future stability of student aid systems.

FAFSA System Fails Amid Education Department Layoffs: Quick Looks

• StudentAid.gov Crashes for Hours – FAFSA applicants struggled to access federal financial aid forms starting Wednesday afternoon.
• Mass Layoffs Impact Troubleshooting – Trump’s Education Department cuts eliminated half of staff, including key IT personnel.
• 300+ Staff Cut from Federal Student Aid – A leaked list reveals two dozen IT experts responsible for FAFSA were laid off.
• Colleges Report FAFSA Failures – Financial aid administrators across the U.S. confirmed students could not complete forms.
• Website Displays ‘Planned Maintenance’ – The outage was not explained, and login access was disabled by Wednesday night.
• FAFSA Issues Could Hurt College Enrollment – 5% drop in freshmen enrollment last year linked to financial aid frustrations.

Deep Look

A widespread outage on StudentAid.gov left thousands of students unable to access FAFSA applications on Wednesday, raising concerns about the impact of mass layoffs within the Department of Education.

The failure comes one day after President Donald Trump’s administration slashed 50% of the department’s workforce, including developers and IT staff who maintained the FAFSA system.

The FAFSA application is essential for millions of students seeking federal financial aid, and any delay in processing forms could disrupt college enrollment, financial planning, and scholarships.

Outage Timeline and Chaos Behind the Scenes

Reports of FAFSA system failures surfaced on Downdetector by midday Wednesday, with users struggling to submit their financial aid applications. Colleges also confirmed technical issues preventing students from completing the required forms.

By Wednesday evening, the StudentAid.gov homepage displayed a “Planned Maintenance” message, and login access was completely disabled. However, sources familiar with the situation contradicted the official explanation, suggesting that the outage was unplanned and worsened by recent staff layoffs.

Inside the Emergency Response

• Around 70 people joined a Teams call attempting to diagnose the problem.
• Former FAFSA technology team members—who were laid off Tuesday—had their access to work emails, phones, and computers revoked, making troubleshooting almost impossible.
• No official statement was issued by the Education Department, despite rising frustration from students, colleges, and financial aid offices.

A source with knowledge of the outage told The Associated Press (AP) that the layoffs completely eliminated the team responsible for maintaining and fixing FAFSA systems, leaving the department scrambling to find alternative solutions.

Education Department Staff Cuts & FAFSA’s Future

The Trump administration’s deep budget cuts have decimated the Department of Education, reducing its workforce from 4,000 to 2,000 employees since Trump took office.

A leaked list obtained by AP revealed that over 300 Federal Student Aid employees were let go, including:

• Two dozen IT professionals responsible for FAFSA maintenance.
• Developers and technical support critical for troubleshooting website issues.
• Policy staff who handled financial aid compliance and system oversight.

These reductions raise serious concerns about the future reliability of FAFSA processing, especially with millions of students depending on timely aid approvals.

FAFSA Problems Already Hurting College Enrollment

The FAFSA system has faced major issues in recent years, even before Trump’s staffing cuts. Under the Biden administration, a FAFSA overhaul aimed at simplifying applications led to technical failures, blocking students from submitting forms or receiving correct financial aid estimates.

These glitches have contributed to declining college enrollment:

• U.S. colleges saw a 5% drop in freshmen enrollment last fall compared to the previous year.
• Colleges serving large numbers of low-income students reported even steeper declines.
• Advocates warn that financial aid frustrations have caused thousands of students to abandon their college plans entirely.

Now, with critical FAFSA personnel laid off, many fear even greater disruptions ahead.

Trump’s Plans to Dismantle the Department of Education

The FAFSA outage underscores a larger issue—Trump’s goal of dismantling the Department of Education altogether.

Since taking office, Trump has:

• Repeatedly proposed eliminating the Department of Education.
• Slashed the agency’s workforce by 50%, impacting student loans, grants, and financial aid programs.
• Transferred key education responsibilities to state governments, weakening federal oversight.

Critics argue that these cuts endanger millions of students who rely on federal financial aid, making access to education even more difficult for low-income families.

While Trump’s supporters claim these measures reduce government waste, opponents warn that gutting financial aid services could severely harm college accessibility in the U.S.

What Happens Next?

The FAFSA outage highlights deeper concerns about the stability of federal student aid programs under Trump’s administration.

Key questions moving forward:

1. Will the FAFSA system remain functional? With half the staff gone, it remains unclear whether future crashes can be quickly resolved.
2. Will students receive financial aid on time? Delays in FAFSA processing could disrupt college funding, preventing students from enrolling.
3. Could more cuts be coming? If Trump continues to dismantle the Department of Education, students may face even more obstacles in securing financial aid.

For now, students and colleges are left in uncertainty, hoping that FAFSA services will stabilize before the fall 2025 enrollment deadline.

Final Thoughts

The StudentAid.gov outage is a warning sign of the potential consequences of slashing government agencies. Trump’s aggressive cuts to the Education Department have left FAFSA systems vulnerable, jeopardizing financial aid access for millions of students.

As college costs rise, a functional and reliable FAFSA system is more crucial than ever—but with fewer staff to maintain, troubleshoot, and oversee student aid programs, the risks of further disruptions loom large.

More on US News

FAFSA Outage Exposes FAFSA Outage Exposes