The federal Education Department is launching a review of the office overseeing college financial aid and the country’s nearly $2 trillion student loan portfolio.
The agency said Thursday it hired an independent consulting firm to make recommendations about how to improve the Federal Student Aid office, which has drawn bipartisan scrutiny this year amid its bungled overhaul of the Free Application for Federal Student Aid, or FAFSA.
A congressional mandate to simplify the form – relied on by millions of high school and college students annually to get federal assistance paying for college – was beset by glitches and errors (the Education Department now says forms are being processed in one to three days, and more than 10 million forms have been submitted).
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The botched rollout tested colleges’ relationships with the federal government while prompting Republican critics to accuse the Biden administration of prioritizing student loan relief at the expense of its other responsibilities. Students from immigrant families were hit especially hard by widespread delays this year in the financial aid process.
The department said Thursday it is restructuring reporting protocols among its top brass and rethinking contracts with outside vendors. The review was first reported Thursday by NBC News.
“These efforts include changes in leadership, boosting oversight and accountability, and engaging a variety of stakeholders so that FSA works best for our most important stakeholders – students and families,” Education Secretary Miguel Cardona wrote in a letter to staff Thursday.
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Cardona also said the department will appoint Denise Carter, an acting assistant secretary, as the principal deputy chief operating officer at Federal Student Aid. The department is searching for a replacement for Rich Cordray, who last month announced he would step down at the end of June.
Cordray is out:Top Education Department official steps down amid crisis over college financial aid
Zachary Schermele covers education and breaking news for USA TODAY. You can reach him by email at zschermele@usatoday.com. Follow him on X at @ZachSchermele.
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