U.S. Department of Education

What U.S. Department of Education does

The U.S. Department of Education is a federal executive agency established in 1979 and headquartered in Washington, D.C. Its core mission is to promote student achievement, ensure equal access to education, and distribute federal funding for educational programs. The agency administers the nation's federal student financial aid system through the Free Application for Federal Student Aid (FAFSA), the Federal Student Aid (FSA) platform, and the StudentAid.gov portal — collectively managing a nearly $1.7 trillion federal student loan portfolio serving approximately 43 million borrowers. Core programs include Pell Grants (~$33 billion total funding, with a maximum award of ~$7,400), Title I formula grants ($18.4 billion), IDEA special education grants, TRIO outreach programs, the Public Service Loan Forgiveness program, and the newly launched Workforce Pell Grant program for 8–15 week short-term training in healthcare, manufacturing, IT, transportation, and skilled trades. The Office for Civil Rights (OCR) operates 12 regional offices enforcing Title IX and other civil rights statutes across K-12 and higher education.

Beyond aid administration, the Department operates a federal civil rights enforcement apparatus across 12 regional OCR offices, funds research and data tools such as the College Scorecard and What Works Clearinghouse, and disburses over $200 billion annually to states, school districts, and postsecondary institutions. Its revenue model is non-commercial: the Department is funded through annual congressional appropriations (FY2027 budget request of $75.7 billion) and interest income on the federal student loan portfolio. Under the Trump administration's 2025–2026 restructuring, the workforce has been reduced from 4,133 to 2,183 employees (~47%), and major functions are being divested — civil rights enforcement to the Department of Justice, special education oversight to Health and Human Services, and management of approximately $180 billion in defaulted loans (with plans for the full $1.7 trillion portfolio) to the Department of Treasury. The Department also recently launched a real-time AI-enabled identity-verification fraud detection system for FAFSA applications (blocking over $200 million in fraud within two months), new income-driven and balance-tiered repayment plans effective July 1, 2026, and temporary auto-pay interest rate reductions.

Name

U.S. Department of Education

Legal name

U.S. Department of Education

Website

https://ed.gov

Company type

Public

Founded year

1979

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

The U.S. Department of Education is a federal executive agency that administers federal student aid, manages a $1.7 trillion federal student loan portfolio serving 43 million borrowers, enforces civil rights in education through 12 regional offices, and distributes over $200 billion annually to states, school districts, and postsecondary institutions.

Ownership category

akta.pro rank

Product category

Federal Education Administration

NAICS

Administration of Education Programs (92311), Educational Services (611)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Services-Educational Services (8200)

akta.pro primary industry

Government Student Financial Aid Agencies (EDADAHAA)

Keywords

• Federal student aid
• Education grant programs
• Civil rights enforcement
• Student loan administration
• Education policy regulation

Headquarters

HQ city

Washington

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Others

Revenue model

1. Student Loan Interest Income: The federal government collects interest on approximately $1.7 trillion in outstanding federal student loans from 43 million borrowers. The portfolio stands at nearly $1.7 trillion.
2. Congressional Appropriations: Annual congressional appropriations fund Department operations and grant programs including Title I ($18.4 billion), IDEA special education, and Pell Grants ($33 billion total funding).

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels4 records

Core offering

The U.S. Department of Education administers federal student financial aid programs, including Pell Grants, federal student loans, and work-study, through the FAFSA application and StudentAid.gov portal serving 43 million borrowers. It distributes federal education funding (Title I, IDEA, TRIO, and other formula and competitive grants) to states, school districts, and institutions, and enforces federal civil rights laws including Title IX, IDEA, FERPA, and Section 504 in education settings.

Product overview

The U.S. Department of Education operates primarily as a regulatory and funding agency rather than a technology product company. Its core digital products center on the federal student financial aid ecosystem, including the Free Application for Federal Student Aid (FAFSA), Federal Student Aid (FSA) platform, and StudentAid.gov portal. These platforms collectively manage nearly $1.7 trillion in federal student loans serving 43 million borrowers. The Department also maintains grant programs including Pell Grants, TRIO Programs, the Native Hawaiian Education Program, and the new Workforce Pell Grant program for short-term career training. The agency provides research tools like the What Works Clearinghouse and College Scorecard for educational decision-making. Major 2026 launches include new student loan repayment plans (RAP and Tiered Standard), expanded identity verification for fraud prevention, and the Workforce Pell program extending federal aid to 8-15 week workforce training programs.

Differentiator

Problem solved

Functional benefit

Products and services

• FAFSA (Free Application for Federal Student Aid) Online application portal for federal student financial aid, allowing students to apply for grants, work-study, and federal loans. Processes identity verification for fraud detection.
• Federal Student Aid (FSA) / StudentAid.gov Platform The office and digital platform within the Department of Education that manages the federal student loan portfolio of nearly $1.7 trillion serving 43 million borrowers. Administers loan programs, repayment plans, and forgiveness programs including Public Service Loan Forgiveness.
• Student Loan Repayment Assistance Plan (RAP) New income-driven repayment plan with payments scaling from 1% to 10% of adjusted gross income, offering forgiveness after 30 years. Replaces the SAVE plan as the primary income-based alternative.
• Tiered Standard Repayment Plan Balance-based repayment plan with fixed terms of 10 to 25 years based on loan balance. Does not qualify for Public Service Loan Forgiveness.
• Workforce Pell Grant Program Federal financial aid program expanding Pell Grants to short-term workforce training programs lasting 8-15 weeks. Targets skills training in healthcare, manufacturing, IT, transportation, and skilled trades sectors.
• Research Facilities Act Program Competitive grant program backed by $125 million annual investment supporting agricultural research facility upgrades at land-grant universities. Provides four levels of funding from $100,000 planning grants to $30 million large-scale research complexes.
• Native Hawaiian Education Program $46 million grant program supporting early childhood education, home visiting programs for children under 5, workforce development, and Hawaiian language immersion programs serving over 3,000 Hawaiian families.
• TRIO Programs Federal outreach and student services programs designed to identify and provide services for disadvantaged college students, including outreach, tutoring, and financial aid guidance.
• Office of Special Education Programs (OSEP) — IDEA Administration Administers IDEA formula and discretionary grants supporting technical assistance, personnel development, and parent-training for infants, toddlers, children and youth with disabilities ages birth through 21.
• Student Aid Fraud Detection System Real-time identity verification and fraud screening system for FAFSA applications that assigns risk tiers and requires government ID verification for high-risk applicants, blocking fraudulent 'ghost student' applications.
• Loan Simulator Online tool allowing borrowers to compare repayment plans and calculate monthly payments under different scenarios to inform loan management decisions.
• College Scorecard College comparison tool providing prospective students with earnings and graduation rate data to compare institutions for informed decision-making.

Named customers3 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature2 records

Partnerships

Seven partnerships are on record, tiered core and supporting.

• Department of JusticecoreStrategic or Co-development Partner · 18 June 2026Transfer of civil rights enforcement responsibilities from the Department of Education to the Department of Justice as part of agency restructuring under the Trump administration.
• Department of Health and Human ServicescoreStrategic or Co-development Partner · 18 June 2026Transfer of special education oversight responsibilities from the Department of Education to HHS as part of broader agency restructuring efforts.
• Department of AgriculturesupportingStrategic or Co-development Partner · 16 June 2026Secretary of Agriculture and Secretary of Education hosted roundtable with land-grant university leaders to announce $125 million annual investment in agricultural research facilities through the Research Facilities Act program.
• Native Hawaiian Education Program granteessupportingOthers · 1 May 2026$46 million in federal funding extended for one year supporting over 60 grant recipients throughout Hawaii serving more than 3,000 families through early childhood education, home visiting programs, workforce development, and Hawaiian language immersion programs.
• Department of TreasurycoreStrategic or Co-development Partner · 1 April 2026Transfer of management of approximately $180 billion in defaulted student loans and eventually the entire $1.7 trillion federal student loan portfolio from Education to Treasury as part of agency dismantling efforts.
• Department of Homeland SecuritysupportingTechnology or Integration · 1 April 2026Partnership with DHS to tighten safeguards for identity verification in federal student aid applications, supporting fraud prevention efforts.
• Social Security AdministrationsupportingTechnology or Integration · 1 April 2026Partnership with SSA to integrate identity verification systems for federal student aid applications to prevent fraud.

Scale indicators13 records

Recent moves12 records

Expansion highlights5 records

Direct peers

• Edfinancial Services: Federal student loan servicer under contract with the Department of Education managing Direct Loan accounts and customer service for borrowers. Operates the same loan portfolio interface and customer-support infrastructure on the same federal student loan product that Education administers.
• California Student Aid Commission: California's state student aid agency administering Cal Grants, Middle Class Scholarships, and state-level loan programs. Delivers financial aid administration at massive scale for the largest U.S. state population with essentially the same mission as the federal Department's Federal Student Aid office.
• Nelnet: Largest U.S. federal student loan servicer operating under contract with the U.S. Department of Education, servicing Direct Loan and FFEL accounts for millions of federal borrowers. Operates the same loan servicing infrastructure and customer-service platforms that back the $1.7T federal student loan portfolio.
• MOHELA: Missouri Higher Education Loan Authority is a federal student loan servicer contracted with the Department of Education, currently servicing accounts for millions of borrowers. Directly handles loan servicing on the same federal portfolio that the Department administers and is now transitioning to Treasury.
• Texas Higher Education Coordinating Board: Texas state-level higher education oversight and financial aid administrator providing formula funding and student aid programs for the second-largest U.S. state. Performs the state-level analogue to the federal Department's higher education funding and oversight role.
• New York State Higher Education Services Corporation: State-level student financial aid agency administering state grant and loan programs (TAP, Excelsior) for New York residents. Operates the closest analogue to the federal Department's aid-administration mission, distributing financial aid and overseeing loan programs at scale for a comparable student/borrower population.
• Maximus (Aidvantage): Federal student loan servicer through its Aidvantage brand under contract with the Department of Education, handling direct loan servicing and customer service for borrowers. Operates the same loan management infrastructure for Direct Loan and FFEL borrowers that Education's FSA office oversees.

Broad incumbents

• U.S. Department of Veterans Affairs: Federal agency administering the GI Bill education benefits for veterans and military families. Operates at similar scale with an overlapping mission of federal financial support for higher education, though for a distinct beneficiary population, with benefit-disbursement infrastructure paralleling Education's loan portfolio mechanics.
• U.S. Small Business Administration: Federal agency administering major federal loan guarantee programs (7(a), 504, disaster loans) with the mission of providing federally-backed credit access. Operates parallel credit-administration infrastructure and loan-servicing oversight comparable to Education's federal student loan programs.
• U.S. Department of the Treasury: Federal agency now absorbing management of approximately $180 billion in defaulted student loans and eventually the entire $1.7T federal student loan portfolio through the Bureau of the Fiscal Service. Operates broader credit, debt administration, and capital-markets functions that directly parallel Education's loan portfolio administration responsibility.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/usedgov
• YouTubeyoutube.com/@usedgov
• Facebookfacebook.com/timeline
• LinkedInlinkedin.com/company/u.s.-department-of-education
• Instagraminstagram.com/usedgov

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments192 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about U.S. Department of Education