U.S. Secretary of Education Miguel Cardona has announced a series of steps aimed at modernizing the Office of Federal Student Aid (FSA). The initiatives, detailed in a letter to staff and posted on the Education Department's Homeroom blog, focus on improving management and operational efficiency to better serve students, families, borrowers, and schools.
Key measures include the search for a new Chief Operating Officer (COO) for FSA. This role will be critical in overseeing improvements in management and execution of services, particularly in information technology. Denise Carter has been appointed as Principal Deputy Chief Operating Officer (PDCOO) during this transition period.
The Department plans to conduct a comprehensive review of FSA’s organizational structure, management practices, staffing, workflows, business processes, and operations. An independent consulting firm has been hired to provide recommendations on enhancing FSA’s design and structure.
Secretary Cardona emphasized the importance of holding vendors accountable through revised contracts and acquisition procedures. The Department is also restructuring senior leadership reporting protocols to increase accountability.
A new IT innovation team will be established to lead digital transformation efforts within FSA. This team will recruit top engineers, project managers, and designers to support key initiatives such as the 2025-2026 FAFSA implementation.
The Department will seek input from the Office of Inspector General (OIG) and engage with Members of Congress to ensure comprehensive improvements at FSA. Additionally, ongoing outreach efforts to parents, students, colleges, and community organizations will continue through listening sessions this summer.
In his letter to staff, Secretary Cardona stated: "Over the last three years, the Department and FSA have made great strides in making sure federal financial aid is put in the hands of students. However, changes are needed to make sure students, borrowers, and families have a better user experience with FSA."
Cardona reaffirmed the commitment to maintaining core functions such as administering FAFSA®, awarding Pell Grants and campus-based aid, managing student loans, and overseeing institutions of higher education.
The Secretary concluded by reiterating that these changes aim to ensure that FSA continues to help millions of Americans access higher education efficiently.
