"Trump’s latest plan—spinning FSA off into a stand-alone agency—is not a new idea. But experts warn that it could cause disruption as FSA works to carry out complex student loan policies," Inside Higher Ed reports.

..."The OMB also said that the reporting was 'inaccurate,' and the Treasury Department did not respond to Inside Higher Ed’s request for comment. 

Melanie Storey, president of the National Association of Student Financial Aid Administrators, who previously worked at FSA, said the reported plans appear to align with the third phase of the Treasury agreement. It would just mean that rather than effectively becoming an office of Treasury, FSA would serve as an independent bureau or subdivision that coordinates with both ED and Treasury. But the Sun says FSA would be an independent agency, not a bureau, and the IAA doesn’t explicitly mention either option. Congress would have to sign off on making FSA fully independent of ED."

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: 10/19/2026