3 Ways the Education Dept. Stands Accused of Mismanaging Student Aid

"The Education Department got hit from all sides at a congressional hearing Wednesday, with lawmakers, advocates, and investigators alike accusing the agency of everything from lax oversight to poor customer service," The Chronicle of Higher Education reports.

"Their target was the department’s Office of Federal Student Aid, the semiautonomous division charged with awarding billions of dollars of student grants and loans, and overseeing the thousands of contractors and colleges that deliver and manage that money. With a loan portfolio of more than $1.2 trillion, FSA is, as the department’s inspector general noted Wednesday, 'one of the largest financial institutions in the country.'

... Justin S. Draeger, president of the National Association of Student Financial Aid Administrators, said conversations with the agency are often "one-sided," with officials often making changes 'without announcement or forewarning.' He said colleges were reluctant to complain 'because FSA ultimately holds all the cards.'

'The perception is that you keep complaints to a minimum or risk a program review,' he said."

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NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.




Publication Date: 11/19/2015

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