The head of the Federal Student Aid office, Richard Cordray, has announced his departure following criticism over the botched rollout of this year's college financial aid form. Cordray, who has served as the chief operating officer of FSA in the Department of Education since May 2021, will be stepping down from his role after a three-year term.
The issues stem from delays and technical glitches with the new version of the Free Application for Federal Student Aid (FAFSA) released late last year. These problems have left millions of students waiting to determine their college costs for the upcoming fall semester, raising concerns about potential enrollment impacts on low-income students.
Cordray's departure comes after facing scrutiny during a recent hearing by the House Committee on Education and the Workforce regarding the FAFSA rollout. The committee, led by Republican Rep. Virginia Foxx, expressed that it was time for Cordray to resign.
Despite the challenges with the FAFSA overhaul, Education Secretary Miguel Cardona commended Cordray for his work in improving the student loan program, facilitating record student debt forgiveness, and holding fraudulent schools accountable.
The FAFSA changes were authorized through legislation in 2019 and 2020 to simplify the form and expand eligibility for federal student aid, particularly for low-income students. However, the rollout faced significant setbacks, including delays in availability, technical issues during submission, and errors in data processing.
The Biden administration acknowledged the complexity of the FAFSA overhaul, attributing some challenges to insufficient funding requests from Congress. Republicans criticized the Department of Education for prioritizing student loan forgiveness policies over FAFSA implementation.
During Cordray's tenure, FSA canceled approximately $153 billion in federal student loan debt for 4 million borrowers, addressed a backlog of debt relief applications, and introduced new repayment plans for low-income borrowers. Cordray's previous experience at the Consumer Financial Protection Bureau, where he prioritized protecting student loan borrowers, was seen as a positive factor when he was appointed to lead FSA.
Despite the controversies surrounding the FAFSA rollout, Cordray's contributions to student loan reform and debt relief initiatives have been recognized by various stakeholders, including progressive leaders like Sen. Elizabeth Warren.
