The U.S. Department of Education and Secretary Linda McMahon are bracing for a period of aggressive congressional oversight following a decisive shift in power during this week’s midterm elections. While incoming Democratic leadership has yet to finalize a formal agenda, the transition of power in both the House and Senate signals a looming investigation into the department’s operational integrity, its handling of federal student loan portfolios, and the administration’s controversial attempts to decentralize or dismantle the agency.

A Track Record of Friction

Congressional Democrats have spent the last two years vocalizing sharp opposition to the department’s internal restructuring. Critics point to significant staff reductions and the erosion of oversight offices dedicated to student loan servicers as primary drivers of the systemic failures plaguing current repayment and forgiveness programs. Despite the administration’s insistence that its reforms are successful, lawmakers argue that the department is currently ill-equipped to manage complex federal mandates, resulting in widespread processing errors and significant delays for borrowers.

The Battle Over Student Debt

The department’s management of student aid is already under fire in the judicial system. Multiple class-action lawsuits have been filed, alleging that the agency unlawfully denied relief under the Closed School Discharge program and failed to properly administer the Public Service Loan Forgiveness (PSLF) initiative. Furthermore, the agency faces potential court sanctions for its alleged non-compliance with the Sweet v. McMahon settlement, a $23 billion agreement that officials have repeatedly attempted to stall.

  • Loan Servicing Oversight: Lawmakers are expected to scrutinize the department's decision to scale back supervision of contractors, which has led to erroneous delinquency notices.
  • Policy Shifts: The rushed transition of borrowers out of the SAVE plan remains a top priority for upcoming legislative inquiries.

Research Funding and Institutional Autonomy

Beyond student loans, the department’s aggressive stance toward higher education—specifically regarding DEI initiatives and unilateral research funding cuts—is set to face a reckoning. With control of the purse strings, Democrats are expected to challenge the administration’s use of funding as a political tool. Legal experts at Foley Hoag suggest that the new majority will likely utilize subpoena power to examine the 2025 Compact for Academic Excellence and other agreements that tied federal research dollars to specific policy commitments.

The Future of Departmental Restructuring

Secretary McMahon has characterized the department’s recent downsizing and the transfer of core responsibilities to other agencies as a “final mission.” However, these inter-agency maneuvers—such as shifting defaulted loan collections to the Treasury Department—have drawn sharp rebukes from lawmakers like Rep. Scott and Sens. Elizabeth Warren and Bernie Sanders. With the legislative branch now under Democratic control, the administration’s ability to bypass Congress to dismantle the department is effectively blocked. While these investigations may not provide immediate relief to borrowers, they serve as a critical mechanism for transparency, potentially setting the stage for a comprehensive legislative overhaul of federal education policy in the coming years.