Report Examines Office of Federal Student Aid

May 1, 2019

The Office of Federal Student Aid, which distributes $120 billion in student aid each year, is one of three performance-based organizations in the federal government. That structure is supposed to make FSA operate more like a private enterprise and focus on clear outcomes.

But the independence that status grants the agency can also shield FSA from accountability for performance, according to a joint report released today by the Center for American Progress and American Enterprise Institute.

The report calls on Congress to consider updates to FSA’s performance-based organization status, including added accountability and transparency. It also calls on the Education Department to develop more detailed and clearer performance agreements for the agency.

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