Washington Post

It’s Time to Reform the Financial Arm of the Education Department, Report Says

May 16, 2017

Minimal transparency and oversight of the Education Department’s financial arm has allowed a unit responsible for $1.1 trillion in federal loans and grants to operate with little accountability to students or taxpayers, according to a report released Tuesday by the National Association of Student Financial Aid Administrators. 
The trade group, known as NASFAA, is urging Congress to review whether the Federal Student Aid office is subject to enough supervision by the education secretary, and whether the unit has been granted too much autonomy in setting goals, assessing its own success and awarding financial bonuses to employees. It is calling for the creation of an independent, seven-member oversight board at FSA that reports directly to the public, the secretary and Congress.

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