"According to a report in the Washington Sun, the Education Department is planning to spin off the Office of Federal Student Aid into an independent agency by Oct. 1, 2027. The Sun cited three sources and internal documents. FSA chief operating officer Richard Lucas is reportedly leading the effort with the White House Office of Management and Budget," The College Investor reported.

..."Melanie Storey, who leads the National Association of Student Financial Aid Administrators and once ran policy implementation at FSA, doubts the timeline. 'October of 2027, I mean come on,' Storey told The Sun. 'This is extraordinarily complex work.'

NASFAA has found that 60% of college aid offices report slower federal processing since the layoffs. Three former Education secretaries have already asked the inspector general to investigate the cost of the department’s layoffs."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 10/17/2026