GAO Finds Oversight and Testing Gaps in New FAFSA Processing System

The Government Accountability Office (GAO), internal watchdog of the federal government, recently reviewed the Department of Education’s new Free Application for Federal Student Aid (FAFSA) Processing System (FPS) and found several oversight and testing gaps.

The GAO reported that Federal Student Aid (FSA), the office that oversees FAFSA, launched the reformed system with key requirements unfinished and then stopped tracking them individually, making it impossible to show what was completed or delayed. The GAO also identified weaknesses in contract management, such as relying on unvalidated performance data and not fully using surveillance processes, along with lapses in staff certifications and testing practices. To address these issues, GAO’s report included a series of recommendations to strengthen oversight and testing. While FSA agreed with some of the recommendations, it took issue with several others.

For example, the Department of Education responded to the GAO report through a formal comment and also argued in a blog post by Deputy Undersecretary James Bergeron that the “traditional, linear project-management model” the GAO favors is outdated and partly responsible for the brittle systems of the past. The Department said it is deliberately shifting toward a modern, agile approach that brings technical expertise in-house, streamlines the development process, and structures work across multiple contracts. The Department urged the GAO to update its recommendations to reflect this delivery model, which emphasizes responsiveness over rigid checklists.

In the blog, Bergeron also emphasized lessons learned from the rocky 2024–25 FAFSA rollout and highlighted progress on the 2025–26 cycle: more than 14 million submissions (an 11%increase year-over-year), high user satisfaction, and improved call center support. They also rolled out new resources like FAFSA Central and a preview deck to help institutions and families. Framing these efforts as part of a long-term modernization push, the Department stressed that it “welcomes oversight,” but will resist reverting to older project-management approaches that slow delivery.

For colleges and universities, the takeaway is to prepare for as much flexibility into internal processes as possible and clarify communications for students and families. Whether the Department’s modernization efforts are delivered fully or GAO’s warnings prove prescient, contingency planning will remain essential for protecting institutional operations and student trust.

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Justin Monk