Resignation of Federal Student Aid head

 

The head of the Federal Student Aid office, Richard Cordray, is set to step down amidst criticism over the mishandled rollout of this year's college financial aid form.

In a letter to staff obtained by CNN, Cordray announced his decision not to continue in his role for another three-year term. He has been serving as the chief operating officer of FSA in the Department of Education since May 4, 2021, and will remain in his position through June to assist with the transition.

Cordray's departure comes amid significant challenges faced by his office, particularly related to the implementation of a new version of the Free Application for Federal Student Aid (FAFSA) released late last year. Technical glitches and delays have left millions of students awaiting information on their college costs for the upcoming fall semester, raising concerns about enrollment rates among low-income students.

The recent scrutiny culminated in a hearing held by the House Committee on Education and the Workforce earlier this month, where Cordray faced criticism for the FAFSA rollout. Some lawmakers, including Republican Rep. Virginia Foxx of North Carolina, called for his resignation.

Education Secretary Miguel Cardona acknowledged Cordray's contributions to the student aid system, citing improvements in loan forgiveness programs and accountability measures for fraudulent institutions. However, Cardona did not directly address the challenges surrounding the FAFSA overhaul in his statement.

Cordray's tenure at FSA was marked by significant efforts to address student loan debt and streamline aid programs. Under his leadership, the office authorized the cancellation of billions in federal student loan debt, tackled a backlog of debt relief applications, and launched new repayment plans to support low-income borrowers.

Despite these achievements, Cordray's departure underscores ongoing challenges within the federal student aid system, particularly in the wake of the FAFSA turmoil. With the May 1 college decision deadline approaching and many students still awaiting financial aid information, the Department of Education faces mounting pressure to address the delays and ensure a smoother process in the future.