Top Education Department official stepping down as college financial aid fiasco continues
Problems with the new FAFSA system have resulted in fewer students applying for first-year financial aid
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The official in charge of federal financial aid is leaving the Department of Education after the disastrous overhaul of the Free Application for Federal Student Aid (FAFSA) that has left students and families in limbo for months.
DOE officials said Richard Cordray, the chief operating officer for Federal Student Aid, will step down at the end of June, USA Today reported Friday.
A bipartisan spending bill passed in December 2020 included legislation aimed at reforming and streamlining the process for submitting the Free Application for Federal Student Aid (FAFSA) ahead of the 2024-25 award year.
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The U.S. Department of Education building in Washington, D.C., July 21, 2007. (Saul Loeb/AFP via Getty Images / Getty Images)
Incoming and current students and their families must complete the FAFSA if they want to receive federal financial aid at institutions of higher education in the next academic year.
The Department of Education's implementation of the new FAFSA process has been beset by delays that have prevented the agency's Office of Federal Student Aid (FSA) from processing FAFSA applications on time.
With students and their families in the dark about their potential financial aid award, delays have had the effect of causing colleges and university systems to delay their priority admissions deadlines.
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Consumer Financial Protection Bureau Director Richard Cordray speaks in Washington Oct. 17, 2014. (Reuters/Larry Downing / Reuters Photos)
Cordray's announced departure comes as many high school seniors across the U.S. are still awaiting financial aid packages that should have been issued by now.
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In a statement to USA Today, Cordray touted the Biden adminstration's sweeping student loan forgiveness as the top achievement of his three years at the DOE.
A student taking notes in class at Pepperdine University (Pepperdine University / Fox News)
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"Over my tenure, we provided student loan forgiveness to more than 4 million borrowers and their families, made it easier for people to apply for and manage federal student aid and took strong actions to hold schools accountable for defrauding students," Cordray said.
FOX Business' Eric Revell contributed to this report.