Supporting Schools Amid DOE Reductions

David A Levy, CPA

Over 30 years of Title IV auditing and advising experience

As many of you are aware, the Department of Education (DOE) has announced a significant reduction in force, with nearly 50% of its employees affected. Understandably, this raises questions and concerns across the proprietary school community regarding the future of federal student aid processes and institutional oversight.

We want to take a moment to address these changes and offer some perspective. While the staffing at the DOE will be reduced, there has been no indication of changes to the core functions of the Department, including the administration of student financial aid. For now, those programs remain in place, providing continued access to essential funding for students and stability for institutions.

That said, we recognize the challenges this transition may present. In 2024, we saw firsthand how system limitations impacted schools when the updated 90/10 reporting requirements collided with technical hurdles in the eZ Audit system. Many of you faced delays and frustrations, and this latest shift may bring further uncertainty.

However, there are steps you can take to navigate these changes proactively. We strongly encourage submitting your audits and reports as early as possible to help ensure timely processing. Early submissions may reduce the risk of prolonged review periods as the DOE adjusts to its new staffing levels.

Most importantly, we urge you to stay informed. The work you do in educating students is vital, and the support for federal financial aid remains intact. While the landscape may shift, your commitment to providing quality education is what truly shapes student success.
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As we move forward, we’ll continue monitoring these developments and keeping you informed. In times of change, resilience and preparation are key — and we are here to support you every step of the way.