The head of the Biden administration’s federal student aid office, Richard Cordray, is stepping down from his post amidst chaos over glitches in the federal student aid application process. Cordray, who has been in the role since 2021, oversaw major changes to student loan repayment programs and debt cancellation initiatives.
Education Secretary Miguel Cardona praised Cordray for his transformative changes to the student aid system, including billions of dollars in debt relief for borrowers and the implementation of a new income-driven repayment system. However, the administration now faces a crisis as technical glitches have plagued the Free Application for Federal Student Aid (FAFSA) process, preventing many students from completing the form.
The FAFSA completion rates have plummeted, with only 33% of the high school class of 2024 having submitted the form. This could result in as many as 700,000 fewer high school seniors completing the FAFSA compared to last year, leading to a potential 4% drop in college enrollment, especially impacting low-income families and first-generation students.
Cordray will remain in his role until June to address the FAFSA issues and other key priorities. The administration’s efforts to streamline the application process have been marred by technical difficulties, including errors in student aid index calculations and issues for U.S.-born students with parents who lack a Social Security number.
The Biden administration’s ambitious plans for student loan debt cancellation may be overshadowed by the FAFSA debacle, which threatens to undermine the progress made in expanding access to higher education.