Washington Update: Dismantling the Department of Education and Redefining Oversight for Higher Ed

Tom Netting, president of TEN Government Strategies and a trusted Washington insider, returns to provide a critical update on sweeping federal changes affecting higher education. In conversation with Drumm McNaughton, he breaks down the Trump administration’s executive order to dismantle the Department of Education, a move that’s already led to major staff reductions and the redistribution of responsibilities across other federal agencies.

Key Discussion Points

Structural Overhaul of the Department of Education:

• Nearly 50% of ED staff have been laid off, including in core offices such as Federal Student Aid and the Office for Civil Rights.

• Regional participation offices have been shut down, leaving institutions without direct support contacts.

• The shift of student loan collections to the Small Business Administration signals an unprecedented reorganization of oversight.

Title IX and Civil Rights Rollbacks:

• The Supreme Court overturned Biden-era Title IX rules, reinstating Trump-era standards.

• Protections for transgender students and DEI-related compliance structures are being reversed or defunded.

• OCR layoffs jeopardize ongoing investigations and reduce institutional support.

Policy Enforcement Through Funding Threats:

• Columbia University’s $400M in federal funding was withheld and later restored after accepting federal conditions, including police authority to arrest student protesters and the appointment of an academic overseer.

• These enforcement tactics set a new precedent, raising concerns about academic freedom and governance.

Student Loan Crisis and Risk Exposure:

• Delinquency rates are reportedly spiking, with internal policy discussions suggesting 70–80% of borrowers may be behind.

• Institutions face growing exposure as default risks rise, with potential Title IV eligibility consequences.

• Risk-sharing legislation and budget reconciliation proposals could place financial liability on colleges for unpaid loans.

Governance, Autonomy, and Institutional Strategy:

• Boards must take a more active role in navigating federal restructuring and enforcement trends.

• The implications go beyond compliance—federal funding is increasingly tied to campus culture, policy, and speech.

• Strategic responses now require governance-level attention to protect institutional mission and integrity.

Three Key Takeaways for Higher Education Leaders and Boards

• Reassure students that aid is still available and prepare them for repayment obligations now managed under new federal structures.

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