Secretary Cardona details plan for modernizing Federal Student Aid office

EDITOR’S NOTE: The Education Department’s Homeroom blog shared a message today regarding comprehensive steps being taken to enhance Federal Student Aid (FSA) for students, families, borrowers, and schools.

Today, a communication was distributed to all employees by U.S. Secretary of Education Miguel Cardona, outlining various initiatives aimed at improving FSA to address ongoing challenges effectively. The Department is enacting the following measures:

• Initiating a search for a new Chief Operating Officer (COO) for FSA.
• Conducting a thorough review of FSA’s organizational structure, management practices, staffing, workflow processes, and operations to modernize the federal financial aid system.
• Employing an external consulting firm to provide recommendations for enhancing FSA’s design, structure, and procedures with a focus on establishing updated organizational methods.
• Reviewing contracts and procurement protocols to ensure vendors are meeting key targets, delivering desired outcomes, and maximizing value for taxpayers.
• Revising senior leader reporting protocols to enhance accountability and optimize resource allocation.
• Establishing a dedicated IT innovation team to lead technological advancements supporting FSA’s digital evolution and recruiting top IT professionals to strengthen FSA’s capabilities in this domain.
• Soliciting feedback from the Office of the Inspector General (OIG) and collaborating with Members of Congress to address constituent needs receiving FSA services.
• Continuing outreach programs to engage with parents, students, colleges, and community organizations through summer feedback sessions.

The complete letter from the Secretary to the staff is provided below:

Dear Colleagues,

For fifty years, Federal Student Aid (FSA) has facilitated access to higher education for millions of Americans. While its core mission remains unchanged, adapting to evolving landscapes and demands has been vital.

In response, FSA has adapted to shifting requirements, fulfilled congressional mandates, and tackled persistent operational obstacles under financial constraints.

Recent years have seen commendable efforts by the Department and FSA to disburse federal financial aid efficiently, safeguard borrowers from errors, and ensure better outcomes for students, borrowers, and families. Nevertheless, refinements are necessary to enhance the FSA experience and outcomes for all involved.

Today, we introduce ambitious steps to enhance FSA for students, families, borrowers, and schools by empowering new leadership, bolstering oversight, and engaging stakeholders to better serve our primary beneficiaries.

Empowering New Leadership

The search for a new Chief Operating Officer (COO) is underway to spearhead efforts in bolstering critical services, especially in IT and project management. This ideal candidate will bring executive expertise, comprehensive program insights, and a dedication to stakeholder satisfaction.

Meanwhile, Denise Carter has been appointed as the Principal Deputy Chief Operating Officer (PDCOO) to drive immediate operational improvements, leveraging her extensive experience and acumen in managing complex organizational components efficiently.

Revamping Operations and Oversight

The Department is resolved to implement transformational changes at FSA, reflecting feedback from stakeholders and design experts.

A comprehensive review of FSA’s historical and current structure, operations, and workflow will be conducted to meet evolving demands and enhance user experiences.

This comprehensive overview includes scrutinizing contract procedures to ensure vendor accountability for optimal performance.

A seasoned independent firm has been engaged to provide insights on enhancing FSA’s design by structuring a modernized operational framework to efficiently support students, families, borrowers, and schools.

Moreover, these changes involve immediate protocol restructuring in senior leadership to reinforce results-driven practices.

The upcoming FSA leadership, in partnership with the Department, will evaluate leadership requirements, streamline assignments, and introduce experts to supervise crucial projects. Additionally, a proficient IT team is being assembled to facilitate innovative IT solutions and recruit top talent to support vital IT initiatives.

Collaboration with External Stakeholders

To integrate internal and external input toward optimizing FSA services, engagement with the Office of Inspector General (OIG) and Congress members is planned.

We anticipate meaningful collaboration with the OIG, drawing from their expertise in conducting comprehensive reviews that will guide our efforts to modernize operations and achieve efficiencies within FSA.

Similarly, bipartisan collaboration with key congressional figures is paramount to ensure that FSA initiatives align with the needs of millions of constituents. Continued dialogue will enhance service enhancements for FSA’s beneficiaries.

Lastly, our outreach initiatives to parents, students, colleges, and community partners will persist, with planned summer listening sessions aimed at driving program enhancements. To date, FSA has processed over 10 million FAFSA® applications.

While implementing these changes, FSA remains unwavering in its commitment to core functions, from FAFSA® administration to managing student loans and supporting higher education institutions to ensure broad access to educational resources.

Sincerely,

Miguel A. Cardona, Ed. D.
U.S. Secretary of Education