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The Office of Federal Student Aid as a Performance-Based Organization. CRS Report R46143, Version 6. Updated

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Title: The Office of Federal Student Aid as a Performance-Based Organization. CRS Report R46143, Version 6. Updated
Language: English
Authors: Alexandra Hegji, Henry B. Hogue, Library of Congress, Congressional Research Service (CRS)
Source: Congressional Research Service. 2025.
Availability: Congressional Research Service. Web site: https://crsreports.congress.gov/
Peer Reviewed: N
Page Count: 64
Publication Date: 2025
Intended Audience: Policymakers
Document Type: Reports - Descriptive
Education Level: Higher Education
Postsecondary Education
Descriptors: Federal Aid, Student Financial Aid, Public Agencies, Federal Government, Administrative Organization, Federal Legislation, Educational Legislation, Higher Education, Organizational Effectiveness
Laws, Policies and Program Identifiers: Higher Education Act Title IV
Abstract: The Office of Federal Student Aid (FSA), within the U.S. Department of Education (ED), is established as a performance-based organization (PBO) pursuant to Section 141 of the Higher Education Act (HEA). FSA is a discrete management unit "responsible for managing the administrative and oversight functions supporting" the HEA Title IV federal student aid programs, including the Pell Grant and the Direct Loan programs. As such, it is the largest provider of postsecondary student financial aid in the nation. In FY2024, FSA oversaw the provision of approximately $120.8 billion in Title IV aid to approximately 9.9 million students attending approximately 5,400 participating institutions of higher education (IHEs). In addition, in FY2024, FSA managed a student loan portfolio encompassing approximately 45 million borrowers with outstanding federal student loans totaling about $1.6 trillion. In recent years, FSA has come under scrutiny for its oversight of IHEs participating in the Title IV student aid programs and contracted loan servicers, its implementation of the FAFSA Simplification Act, its accounting related to the federal student loan programs, and its engagement with stakeholders. This report provides information about the structure and organization of FSA, the nature of the work it performs, and its characteristics as a PBO. Additionally, the report discusses FSA challenges that have received considerable attention in recent years. Should Congress contemplate the reauthorization of the HEA or exercise oversight over FSA, it might examine some of the issues raised by these critiques and the way FSA's organization as a PBO may affect congressional goals and policies. This report begins by discussing the HEA provisions that distinguish FSA from other types of federal agencies. This is followed by a discussion of the legislative history of the creation of FSA as a PBO and of the HEA Title IV programmatic changes that may affect its operations. Next, the report describes the current operations and structure of FSA. Finally, it discusses several issues related to FSA's operations and how they may relate to its structure as a PBO. The issues presented have received recent congressional and stakeholder attention and have been identified in reviews of FSA's operations. Appendix provides a list of selected acronyms used in this report.
Abstractor: ERIC
Entry Date: 2026
Accession Number: ED678592
Database: ERIC
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  Data: The Office of Federal Student Aid (FSA), within the U.S. Department of Education (ED), is established as a performance-based organization (PBO) pursuant to Section 141 of the Higher Education Act (HEA). FSA is a discrete management unit "responsible for managing the administrative and oversight functions supporting" the HEA Title IV federal student aid programs, including the Pell Grant and the Direct Loan programs. As such, it is the largest provider of postsecondary student financial aid in the nation. In FY2024, FSA oversaw the provision of approximately $120.8 billion in Title IV aid to approximately 9.9 million students attending approximately 5,400 participating institutions of higher education (IHEs). In addition, in FY2024, FSA managed a student loan portfolio encompassing approximately 45 million borrowers with outstanding federal student loans totaling about $1.6 trillion. In recent years, FSA has come under scrutiny for its oversight of IHEs participating in the Title IV student aid programs and contracted loan servicers, its implementation of the FAFSA Simplification Act, its accounting related to the federal student loan programs, and its engagement with stakeholders. This report provides information about the structure and organization of FSA, the nature of the work it performs, and its characteristics as a PBO. Additionally, the report discusses FSA challenges that have received considerable attention in recent years. Should Congress contemplate the reauthorization of the HEA or exercise oversight over FSA, it might examine some of the issues raised by these critiques and the way FSA's organization as a PBO may affect congressional goals and policies. This report begins by discussing the HEA provisions that distinguish FSA from other types of federal agencies. This is followed by a discussion of the legislative history of the creation of FSA as a PBO and of the HEA Title IV programmatic changes that may affect its operations. Next, the report describes the current operations and structure of FSA. Finally, it discusses several issues related to FSA's operations and how they may relate to its structure as a PBO. The issues presented have received recent congressional and stakeholder attention and have been identified in reviews of FSA's operations. Appendix provides a list of selected acronyms used in this report.
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      – SubjectFull: Federal Aid
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      – SubjectFull: Student Financial Aid
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      – SubjectFull: Public Agencies
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