Richard Cordray, the head of the Federal Student Aid office, has announced that he will be stepping down after facing criticism for the botched rollout of this year’s college financial aid form. Cordray has served as the chief operating officer of FSA since May 2021 and will be staying on through June to assist with the transition. The problems with the new version of the Free Application for Federal Student Aid (FAFSA) released late last year have caused delays and technical glitches, leaving millions of students waiting to hear how much college will cost them this fall.
Cordray faced scrutiny during a hearing held by the House Committee on Education and the Workforce about the FAFSA rollout, with calls for his resignation from Republican Rep. Virginia Foxx. However, Education Secretary Miguel Cardona praised Cordray’s work on student loan programs and student debt forgiveness but did not mention the FAFSA overhaul specifically. Cordray, who previously served as the director of the Consumer Financial Protection Bureau, highlighted accomplishments during his tenure, including providing student loan forgiveness to millions of borrowers, making federal student aid more accessible, and holding fraudulent schools accountable.
The FAFSA overhaul was mandated by legislation passed in 2019 and 2020 to simplify the form and expand eligibility for federal student aid. Despite the form being shorter, the rollout has been problematic, with delays and glitches causing significant issues for families and students. As a result, financial aid applicants have been left waiting to learn their college costs, even as the typical May 1 college decision deadline approaches. The Biden administration has defended the overhaul as a complex undertaking but has faced criticism from Republicans for not prioritizing the FAFSA implementation.
Cordray oversaw the entire federal student loan system, including significant debt cancellations, backlog processing, and program expansions. Under his leadership, FSA canceled billions of dollars in student loan debt, streamlined debt relief for defrauded borrowers, expanded loan forgiveness programs, and launched a new income-driven repayment plan. Cordray’s tenure was seen as a positive move by progressives given his track record of protecting student loan borrowers at the Consumer Financial Protection Bureau, where he secured debt forgiveness for borrowers affected by for-profit colleges and sued Navient for alleged misconduct in loan servicing.
Despite Cordray’s accomplishments, the FAFSA rollout continued to face challenges, leading to delays for students planning to attend college in the fall. The Department of Education’s focus on implementing Biden’s student loan forgiveness policies has drawn criticism, with calls for accountability from lawmakers on both sides of the aisle. The Government Accountability Office has launched an investigation into the new FAFSA form’s implementation, adding to the pressure for improvements to the system. Cordray’s departure marks a transition in leadership for the FSA office as it navigates ongoing challenges and strives to streamline access to federal student aid for low-income students.
