Federal Student Aid Boss Runcie Resigns
"FSA manages the federal government’s $1.2 trillion student loan portfolio and disburses Pell grants. Although it is housed within the Department of Education, FSA maintains some autonomy and flexibility as a federal performance-based organization. ...
The appointment of a new FSA COO is particularly sensitive because the Department just released an amended contract solicitation agreement on Friday. The new contract would award FSA’s student loan portfolio to a single loan servicer.
'With Jim Runcie’s exit from FSA, it is now critically important that we get the right person to fill the role of Chief Operating Officer,' Justin Draeger, National Association of Student Financial Aid Administrators (NASFAA) president, said in a statement sent to Diverse.
In a report published on May 16, NASFAA concluded that organizational and structural changes are needed at FSA. The report found that there is too little oversight over FSA, and recommended that the education secretary take on more of a supervisory role over its workings. In addition, the report called for an independent, seven-member oversight board that would report directly to the public, the Secretary, and to Congress.
'As the Secretary thinks about the next person, she has an opportunity to more fully engage stakeholders in the selection process to ensure a successful and collaborative partnership between FSA and the higher education community,' Draeger said.
Draeger is slated to testify at the House Oversight Committee hearing today, along with Kathleen Tighe, ED Inspector General."
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Publication Date: 5/25/2017