The Dismantling of the USDE - Higher Education and Accreditation

While the complete dissolution of the Department requires congressional approval, the order aims to substantially reduce its size and functions.

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Impact on Higher Education

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Federal Student Aid
The Department of Education currently manages approximately $1.5 trillion in student loan debt for over 40 million borrowers1. Despite the downsizing efforts, the administration has stated that essential functions such as federal student loans and Pell grants will continue to be administered by the reduced department. 

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Civil Rights Enforcement
The Office for Civil Rights, responsible for investigating and issuing guidance on civil rights laws in education, may face significant changes. The reduced department is expected to continue enforcing civil rights legislation, but the scope and effectiveness of these efforts could be impacted, including supporting all groups.

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Accreditation Changes

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Oversight of Accrediting Agencies
The Department of Education currently oversees the accreditation system by reviewing federally recognized accrediting agencies. With the department's downsizing, this oversight function may be altered but cannot be transferred to another agency without an act of Congress. The "terms" of the oversight may also be impacted with the NACIQI recently recommending a sanction of MSA-CESS at its most recent meeting. Sanctions and other similar actions that impede the independent function of the agencies may also be possible.

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Access to Federal Funding
Accreditation serves as one of the eligibility criteria for institutions to access federal money for student financial aid. Any changes to the accreditation process could potentially affect institutions' eligibility for these funds. However, the management of the funds could be transferred to the state level. Given that most states currently defer to the oversight of accrediting bodies in reviewing academic quality, this transfer and the subsequent checks and balance remain to be seen.

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Potential New Accreditors
There have been suggestions of introducing new accreditors with different standards, including "defending the American tradition" and removing certain diversity initiatives. This would provide more "options" for institutions but given the reduction in staff at the Department, the division that currently supports the recognition process may be hindered in their review process. 

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Legal and Regulatory Considerations

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The complete dissolution of the Department of Education would require congressional approval, as it was established by the Department of Education Organization Act of 1979. Key points to consider:

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1. The Department's essential functions, including civil rights enforcement and student aid management, are expected to continue in some form.

2. Any attempts to fully eliminate the department would face significant opposition in the Senate, where 60 votes are needed to overcome a filibuster.

3. The executive order's implementation may face legal challenges, potentially creating uncertainty in the higher education sector.

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