This one may gore a few oxen.  The Department of Education was created during the Carter administration and began operating in 1980.  The mission of this comparitively new department is "to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access".  They accomplish this with about 5000 employees and a budget of nearly $50 bllion, not including grants.   The Pell Grant program adds another $28 billion in the FY 2012 Obama budget. 

What did we do before 1980?  Has hundreds of billions in federal education spending improved our education system or has it just funnelled money to campaign contributors? 

By far, most education funding comes from the local and state level.  This is how it should be.  The federal government has no business meddling in a local responsibility, they do very little good and much harm.  We can save at least $48 billion by eliminating the Department of Education.