Massive Overhaul of Higher Ed and Shrinking Department of Education Sparks Concerns

The Department of Education made national headlines this week as it announced immediate steps to implement President Trump’s new One Big Beautiful Bill Act—a sweeping overhaul of federal higher education policy. Acting Under Secretary James Bergeron stated that this marks “the first step in implementing the President’s historic agenda,” with regulators moving fast to roll out new rules that shift student loan processes, stress college accountability, and promote stronger pathways from school to the workforce. The public can weigh in during a virtual hearing scheduled for September, leading up to a series of rulemaking sessions this fall and winter. These changes are expected to affect millions of borrowers, colleges, and job-seekers across the country. But the news doesn’t stop there. The Supreme Court just cleared the way for the Trump administration to proceed with the largest round of layoffs in the department’s history, cutting over 1,300 workers. This dramatic move delivers on a long-standing conservative promise to shrink the agency, but it’s causing widespread concern. Former department liaison Dani Pierce said, “This isn't just about jobs; it's about abandoning the people and programs that protect students’ rights and support educators.” Many experts fear that such a deep cut—effectively halving the agency’s size—will put the nation’s most vulnerable students at greater risk, with fewer resources to enforce civil rights laws, deliver special education funding, and ensure equitable access to learning. Meanwhile, the Department is also taking action on student loans. Interest will start accruing again for more than 7 million borrowers previously in the Biden administration’s SAVE Plan, after a federal court blocked key provisions of that program. Starting now, these borrowers are being contacted directly about choosing new, legally compliant repayment plans. This comes as the Department emphasizes fiscal responsibility and vows to make student repayment more straightforward, though critics argue that the cancellation of the zero-interest feature will strain families nationwide. Innovation remains a focus as well. Secretary Linda McMahon just released new guidance on using artificial intelligence in schools, calling AI “a tool to support individualized learning and advancement.” The Department is inviting public comment on supplemental grant priorities to responsibly integrate AI, streamline school operations, and better prepare students for future careers. Stakeholders—including parents, teachers, and the tech sector—are encouraged to provide feedback by August 20 through the federal rulemaking portal. For state and local governments, these changes mean a dramatic shift in the balance of educational oversight. The administration’s push to “return education power to the states,” as ABC News reports, signals a potential decrease in federal influence over core programs like special education grants and civil rights enforcement. For busines This content was created in partnership and with the help of Artificial Intelligence AI.