FOR IMMEDIATE RELEASE
Contact: Erin Powers
Director of Marketing & Communications
WASHINGTON, DC, May 3, 2021 — Following Education Secretary Miguel Cardona's announcement selecting Richard Cordray to serve as chief operating officer of the Office of Federal Student Aid, NASFAA President and CEO Justin Draeger issued the following statement.
"If ever we needed a sign that Federal Student Aid is a different organization than it was when it was created 20 years ago, the appointment of Richard Cordray is it. Mr. Cordray brings political and practical experience unlike any previous FSA chief operating officer. He will need those skills and more to address the significant challenges ahead that will impact millions of student aid applicants and recipients, the most acute being the successful onboarding of 40 million borrowers back into federal student loan repayment. NASFAA, in concert with several other organizations representing students and consumers, has called on the Department of Education to take immediate and targeted steps to help borrowers from falling into student loan delinquency and default.
Another immediate concern for Mr. Cordray is developing a roadmap to successfully implement changes to the Free Application for Federal Student Aid (FAFSA) and the underlying federal methodology formula mandated by Congress in December of 2020. More than 19 million students complete the FAFSA each year, and this singular form serves as the gateway for students to receive billions of dollars in federal, state, institutional, and private scholarship aid. Congress has mandated that these changes be implemented by July 1, 2023, which means they must be reflected in the FAFSA that becomes available October 1, 2022.
We congratulate him on his selection and look forward to working with our federal colleagues, under Mr. Cordray's leadership, to tackle these and many other operational and strategic challenges faced by Federal Student Aid."
The National Association of Student Financial Aid Administrators (NASFAA) provides professional development for financial aid administrators; advocates for public policies that increase student access and success; serves as a forum on student financial aid issues; and is committed to diversity throughout all activities. NASFAA’s membership includes 22,000 student financial assistance professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S.
Publication Date: 5/3/2021