The nation’s top student aid official, Richard Cordray, is stepping down from his position as the leader of the Federal Student Aid office in June, with Education Secretary Miguel A. Cardona making the announcement. Cordray had been overseeing various programs within the Biden administration’s student debt relief plans, aiming to provide loan forgiveness and income-driven repayment plans for millions of borrowers. Before joining the Education Department, Cordray served as the first director of the Consumer Financial Protection Bureau for six years, where he pursued debt collectors and financiers, resulting in around $12 billion in refunds and canceled debts for nearly 30 million people.
The Education Department had been facing criticism from college administrators, students, and members of Congress for its mismanagement of the redesign of the Free Application for Federal Student Aid (FAFSA) form, causing chaos during the college admissions process this year. The department had been working on simplifying the FAFSA form to make it more accessible to students and their families since the beginning of Cordray’s tenure, but faced delays and issues upon its launch at the end of 2023. This botched rollout led to a variety of bugs and data errors that prevented students from accessing the application and produced incorrect financial calculations.
Despite the challenges faced during this admissions season, Cordray’s departure was announced by Cardona, who praised Cordray for his accomplishments in transforming the student aid system more than any of his predecessors. However, the difficulties surrounding the new FAFSA form led to frustration among education advocates and concerns about the impact on vulnerable students and smaller colleges facing financial pressure. The Education Department had to scramble to contain the damage caused by the faulty rollout, including pulling in staff members from various departments and working overtime and weekends to fix the issues.
As criticism from Republicans in Congress grew, calls for resignations within the Education Department were made during a hearing about the FAFSA issues. Experts and college administrators testified about the harm caused by the delayed financial aid process this year, questioning the leadership of Cordray and the Education Department. Despite the setbacks, Cardona expressed gratitude for Cordray’s service and highlighted the positive changes he had implemented during his time in the Federal Student Aid office. Cordray had been celebrating around Mr. Biden’s plan to cancel more than $400 billion in student debt for tens of millions of borrowers, even though these plans were struck down by the Supreme Court by the end of last year.
Throughout his tenure at the Education Department, Cordray had been working to implement various student debt relief measures and oversee the launch of the new FAFSA form, all while facing challenges and setbacks that ultimately led to a less than smooth process for students this year. The internal discussions and recordings obtained by The New York Times shed light on the behind-the-scenes efforts to fix the issues with the FAFSA form and contain the damage caused by the botched rollout. Despite the criticism and setbacks faced during this admissions season, Cordray’s departure marks the end of a tumultuous period for the Federal Student Aid office, with Cardona expressing optimism for the future of student aid under new leadership.
