Department of Education

STUDENT AID ADMINISTRATION

Fiscal Year 2024 Budget Request

CONTENTS

Page

Appropriations Language.............................................................................................................. 1

Analysis of Language Provisions and Changes............................................................................. 5

Amounts Available for Obligation.................................................................................................. 9

Obligations by Object Classification............................................................................................10

Obligations by Object Classification, Supplemental, CRRSAA Act (P.L. 116-260).....................11

Obligations by Object Classification, Supplemental, ARP Act (P.L. 117-02) ..............................12

Summary of Changes .................................................................................................................13

Authorizing Legislation................................................................................................................14

Appropriations History.................................................................................................................15

Significant Items in FY 2023 Appropriations Reports..................................................................16

Activity:

Student Aid Administration....................................................................................................18

Account Summary Table.............................................................................................................62
STUDENT AID ADMINISTRATION

1 

Appropriations Language

For Federal administrative expenses to carry out part D of title I, and subparts 1, 3, 9, and 10 of 

part A, and parts B, C, D, and E of title IV of the HEA, and subpart 1 of part A of title VII of the 

Public Health Service Act, [$2,033,943,000]$2,654,034,000, to remain available through 

September 30, [2024: Provided, That the Secretary shall allocate new student loan borrower 

accounts to eligible student loan servicers on the basis of their past performance compared to 

all loan servicers utilizing established common metrics, and on the basis of the capacity of each 

servicer to process new and existing accounts:1 Provided further, That for student loan contracts 

awarded prior to October 1, 2017, the Secretary shall allow student loan borrowers who are 

consolidating Federal student loans to select from any student loan servicer to service their new 

consolidated student loan:2 Provided further, That in order to promote accountability and high 

quality service to borrowers, the Secretary shall not award funding for any contract solicitation 

for a new Federal student loan servicing environment, including the solicitation for the Federal 

Student Aid (FSA) Next Generation Processing and Servicing Environment, unless such an 

environment provides for the participation of multiple student loan servicers that contract directly 

with the Department of Education to manage a unique portfolio of borrower accounts and the full 

life-cycle of loans from disbursement to pay-off with certain limited exceptions, and allocates 

student loan borrower accounts to eligible student loan servicers based on performance:3

Provided further, That the Department shall re-allocate accounts from servicers for recurring 

non-compliance with FSA guidelines, contractual requirements, and applicable laws, including 

for failure to sufficiently inform borrowers of available repayment options:4 Provided further, That 

such servicers shall be evaluated based on their ability to meet contract requirements (including 

an understanding of Federal and State law), future performance on the contracts, and history of 

compliance with applicable consumer protections laws:5 Provided further, That to the extent 

FSA permits student loan servicing subcontracting, FSA shall hold prime contractors 
STUDENT AID ADMINISTRATION

Appropriations Language

2

accountable for meeting the requirements of the contract, and the performance and 

expectations of subcontractors shall be accounted for in the prime contract and in the overall 

performance of the prime contractor:6 Provided further, That FSA shall ensure that the Next 

Generation Processing and Servicing Environment, or any new Federal loan servicing 

environment, incentivize more support to borrowers at risk of delinquency or default:7 Provided 

further, That FSA shall ensure that in such environment contractors have the capacity to meet 

and are held accountable for performance on service levels; are held accountable for and have 

a history of compliance with applicable consumer protection laws; and have relevant experience 

and demonstrated effectiveness:8 Provided further, That the Secretary shall provide quarterly 

briefings to the Committees on Appropriations and Education and Labor of the House of 

Representatives and the Committees on Appropriations and Health, Education, Labor, and 

Pensions of the Senate on general progress related to solicitations for Federal student loan 

servicing contracts:9 Provided further, That FSA shall strengthen transparency through 

expanded publication of aggregate data on student loan and servicer performance:10 Provided

further, That not later than 60 days after enactment of this Act, FSA shall provide to the 

Committees on Appropriations of the House of Representatives and the Senate a detailed 

spend plan of anticipated uses of funds made available in this account for fiscal year 2023 and 

provide quarterly updates on this plan (including contracts awarded, change orders, bonuses 

paid to staff, reorganization costs, and any other activity carried out using amounts provided 

under this heading for fiscal year 2023):11 Provided further, That the FSA Next Generation 

Processing and Servicing Environment, or any new Federal student loan servicing environment, 

shall include accountability measures that account for the performance of the portfolio and 

contractor compliance with FSA guidelines:12 Provided further, That notwithstanding the 

requirements of the Federal Property and Administration Services Act of 1949, 41 U.S.C. 3101 
STUDENT AID ADMINISTRATION

Appropriations Language

3 

et seq., as amended; parts 6, 16, and 37 of title 48, Code of Federal Regulations; or any other 

procurement limitation on the period of performance, the Secretary may extend the period of 

performance for any contract under section 456 of the HEA for servicing activities for up to one 

year from the current date of expiration]13 202514. (Department of Education Appropriations Act, 

2023.)

GENERAL PROVISIONS

SEC. 307. Funds appropriated in this Act under the heading "Student Aid Administration" may 

be available for payments for student loan servicing to an institution of higher education that 

services outstanding Federal Perkins Loans under part E of title IV of the Higher Education Act 

of 1965 (20 U.S.C. 1087aa et seq.). 

SEC. 309. Of the amounts made available in this title under the heading "Student Aid

Administration", up to $2,300,000 [shall]may be [used by]available to the Secretary of Education 

to conduct outreach to borrowers of loans made under part D of title IV of the Higher Education 

Act of 1965 who may intend to qualify for loan cancellation under section 455(m) of such Act (20 

U.S.C. 1087e(m)), to ensure that borrowers are meeting the terms and conditions of such loan 

cancellation:15 Provided, That the Secretary shall specifically conduct outreach to assist 

borrowers who would qualify for loan cancellation under section 455(m) of such Act except that 

the borrower has made some, or all, of the 120 required payments under a repayment plan that 

is not described under section 455(m)(A) of such Act, to encourage borrowers to enroll in a 

qualifying repayment plan: Provided further, That the Secretary shall also communicate to all 

Direct Loan borrowers the full requirements of section 455(m) of such Act and improve the filing 

of employment certification by providing improved outreach and information such as outbound 
STUDENT AID ADMINISTRATION

Appropriations Language

4

calls, electronic communications, ensuring prominent access to program requirements and 

benefits on each servicer's website, and creating an option for all borrowers to complete the 

entire payment certification process electronically and on a centralized website.

NOTES

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document which follows the appropriation language.
STUDENT AID ADMINISTRATION

5

Analysis of Language Provisions and Changes

Language Provision Explanation

1 ... [:Provided, That the Secretary shall 

allocate new student loan borrower accounts 

to eligible student loan servicers on the basis 

of their performance compared to all loan 

servicers utilizing established common 

metrics, and on the basis of the capacity of 

each servicer to process new and existing 

accounts:]

This language would require the Secretary to 

allocate new student loan accounts to

student loan servicers based on 

performance. This language is eliminated 

because this requirement is in FSA’s Unified

Servicing and Data Solution (USDS)

solicitation and will be met when USDS is 

implemented.

2 ... [Provided further, That for student loan 

contracts awarded prior to October 1, 2017, 

the Secretary shall allow student loan 

borrowers who are consolidating Federal 

student loans to select from any student loan 

servicer to service their new consolidated 

student loan:]

This language would allow consolidated 

student loan borrowers to select from any 

student loan servicer. This language is 

eliminated because FSA currently complies 

with this language.

3 ... [Provided further, That in order to

promote accountability and high-quality 

service to borrowers, the Secretary shall not 

award funding for any contract solicitation for 

a new Federal student loan servicing 

environment, including the solicitation for the 

Federal Student Aid (FSA) Next Generation 

Processing and Servicing Environment, 

unless such an environment provides for the 

participation of multiple student loan 

servicers that contract directly with the 

Department of Education to manage a 

unique portfolio of borrower accounts and 

the full life-cycle of loans from disbursement 

to pay-off with certain limited exceptions, 

and allocates student loan borrower 

accounts to eligible student loan servicers 

based on performance:]

This language is eliminated because this 

requirement is in FSA’s Unified Servicing 

and Data Solution (USDS) solicitation and 

will be met when USDS is implemented.
STUDENT AID ADMINISTRATION

Analysis of Language Provisions and Changes

6

Language Provision Explanation

4 ... [Provided further, That the Department 

shall re-allocate accounts from servicers for 

recurring non-compliance with FSA 

guidelines, contractual requirements, and 

applicable laws, including for failure to 

sufficiently inform borrowers of available 

repayment options:]

This language would require the Secretary

to reallocate accounts from servicers with 

recurring compliance issues. This language 

is eliminated because this requirement is in 

FSA’s Unified Servicing and Data Solution 

(USDS) solicitation and will be met when 

USDS is implemented.

5 ... [Provided further, That such servicers 

shall be evaluated based on their ability to 

meet contract requirements (including an 

understanding of Federal and State law), 

future performance on the contracts, and 

history of compliance with applicable 

consumer protections laws:]

This language would require servicers to be 

evaluated based on their ability to meet 

contract requirements. This language is 

eliminated because FSA evaluated Unified 

Data and Servicing Solution (USDS) Offerors 

based on these criteria.

6.. [Provided further, That to the extent FSA 

permits student loan servicing

subcontracting, FSA shall hold prime 

contractors accountable for meeting the 

requirements of the contract, and the 

performance and expectations of 

subcontractors shall be accounted for in the 

prime contract and in the overall 

performance of the prime contractor:]

This language would allow FSA to permit 

student loan servicing subcontracting but

hold the prime contractors accountable for 

subcontractors’ performance. This language 

is eliminated because this requirement is in 

FSA’s Unified Servicing and Data Solution 

(USDS)solicitation and will be met when 

USDS is implemented.

7 ... [Provided further, That FSA shall ensure 

that the Next Generation Processing and 

Servicing Environment, or any new Federal 

loan servicing environment, incentivize more 

support to borrowers at risk of delinquency

or default:]

This language would require FSA to ensure 

that new contracts provide increased support 

to distressed borrowers. This language is 

eliminated because this requirement is in 

FSA’s Unified Servicing and Data Solution 

(USDS) solicitation and will be met when 

USDS is implemented.

8 ... [Provided further, That FSA shall ensure 

that in such environment contractors have

the capacity to meet and are held

accountable for performance on service 

levels; are held accountable for and have a 

history of compliance with applicable 

consumer protection laws; and have a 

relevant experience and demonstrate 

effectiveness:]

This language would require FSA to establish 

and ensure a variety of requirements for loan 

servicing contractors. This language is 

eliminated because this requirement is in 

FSA’s Unified Servicing and Data Solution 

(USDS) solicitation and will be met when 

USDS is implemented.
STUDENT AID ADMINISTRATION

Analysis of Language Provisions and Changes

7

Language Provision Explanation

9 ... [Provided further, That the Secretary 

shall provide quarterly briefings to the 

Committees on Appropriations and 

Education and Labor of the House of 

Representatives and the Committees on 

Appropriations and Health, Education, Labor,

and Pensions of the Senate on general 

progress related to solicitations for Federal

student loan servicing contracts:]

This language is removed because the 

requested briefings have been provided and 

FSA plans to award the Unified Servicing and 

Data Solution (USDS), after which a new 

servicing procurement will not occur for 

several years.

10 ... [Provided further, That FSA shall 

strengthen transparency through expanded 

publication of aggregate data on student

loan and servicer performance:]

This language is removed because FSA has 

expanded the FSA Data Center and continues

to augment its data warehouse with new data 

as necessary to facilitate these efforts.

11... [Provided further, That not later than 60 

days after enactment of this Act, FSA shall 

provide to the Committees on Appropriations 

of the House of Representatives and the 

Senate a detailed spend plan of anticipated 

uses of funds made available in this account 

for fiscal year 2023 and provide quarterly 

updates on this plan (including contracts 

awarded, change orders, bonuses paid to 

staff, reorganization costs, and any other 

activity carried out using amounts provided 

under this heading for fiscal year 2023):]

This language is removed because FSA will 

provide the requested reports.

12...[Provided further, That the FSA Next 

Generation Processing and Servicing 

Environment, or any new Federal student loan 

servicing environment, shall include 

accountability measures that account for the 

performance of the portfolio and contractor 

compliance with FSA guidelines:]

This language would require FSA to establish 

and ensure a variety of requirements for loan 

servicing contractors. This language is 

eliminated because this requirement is in 

FSA’s Unified Servicing and Data Solution 

(USDS) solicitation and will be met when 

USDS is implemented.
STUDENT AID ADMINISTRATION

Analysis of Language Provisions and Changes

8 

Language Provision Explanation

13...[ Provided further, That, notwithstanding 

the requirements of the Federal Property 

and Administration Services Act of 1949, 41 

U.S.C. 3101 et seq., as amended; parts 6, 

16, and 37 of title 48, Code of Federal 

Regulations; or any other procurement 

limitation on the period of performance, the 

Secretary may extend the period of 

performance for any contract under section 

456 of the HEA for servicing activities for up 

to one year from the current date of 

expiration.]

This language is removed because the 

Unified Data and Servicing Solution (USDS)

is expected to go live before another 

extension would be needed.

14 to remain available through September 30, 

[2024] 2025

This language provides for appropriated funds 

to remain available for 2 years.

GENERAL PROVISIONS

15 Of the amounts made available in this title 

under the heading "Student Aid

Administration", up to $2,300,000 [shall]may 

be [used by ]available to the Secretary of 

Education to conduct outreach to borrowers 

of loans made under part D of title IV of the 

Higher Education Act of 1965 who may 

intend to qualify for loan cancellation under 

section 455(m) of such Act (20 U.S.C. 

1087e(m)), to ensure that borrowers are 

meeting the terms and conditions of such 

loan cancellation

This language allows the Secretary to use up 

to $2,300,000 in appropriated Student Aid 

Administration funds for outreach to 

borrowers who may intend to qualify for 

Public Service Loan Forgiveness.
STUDENT AID ADMINISTRATION

9

Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2022 2023 2024

Discretionary budget authority:

Appropriation $2,033,943 $2,033,943 $2,654,034

Unobligated balance, start of year 62,083 32,833 0

Recovery of prior-year obligations 45,909 0 0

Unobligated balance expiring -31,778 0 0

Unobligated balance, end of year -32,833 0 0

Total, direct obligations 2,077,324 2,066,776 2,654,034
STUDENT AID ADMINISTRATION

10

Obligations by Object Classification

(dollars in thousands)

Class 

#

Object Class 2022

Actual

2023

Appropriation

2024

Request 

Change, 

2023 to 

2024

11.10 Full-time permanent $190,263 $218,503 $233,589 +$15,086

11.31 Full-time temporary 4,955 0 0 0

11.32 Part-time 412 0 0 0

11.33 Consultants 188 0 0 0

11.51 Overtime 303 641 647 +6

11.52 Awards 3,888 4,306 4,885 +579

11.80 Other Compensation 165 0 0 0

Subtotal, Personnel Comp. 200,174 223,450 239,121 +15,671

12.00 Benefits

 

70,073 79,502 86,266 +6,764

13.10 Benefits for Former Personnel 0 141 78 -63

Subtotal, Per. Comp & Ben. 270,247 303,093 325,465 +22,372

21.00 Travel 252 646 763 +117

22.00 Transportation of things 0 0 0 0

23.10 Rental payments to GSA 19,550 19,184 14,000 -5,184

23.31 Communications 9 0 0 0

23.32 Postage/fees 19 3 3 0

Subtotal, 23 19,578 19,187 14,003 -5,184

24.00 Printing and reproduction 6 6 7 +1

25.10 Advisory and assistance services 4,206 134 1,410 +1,276

25.21 Other services 1,031,007 866,341 1,085,605 +219,264

25.22 Training/Tuition/Contracts 842 1,459 2,263 +804

25.30 Goods/Services from Gov’t 45,912 40,969 60,791 +19,822

25.40 Operations/Maint of Facilities 0 0 0 0

25.71 Operations/Maint of Equipment 0 3,000 0 -3,000

25.72 IT Services/Contracts 632,034 828,033 1,163,478 +335,445

Subtotal, 25 1,713,991 1,739,936 2,313,547 +573,611

26.00 Supplies 50 68 85 +17

31.10 IT Equipment/Software 58 156 164 +8

31.30 Other Equipment 0 0 0 0

Subtotal, 31 58 156 164 +8

32.00 Building Alterations 755 0 0 0

42.20 Settlement of Claims 5

43.10 Prompt payment interest 2 0 0 0

Total, Obligations 2,004,944 2,063,092 2,654,034 +590,942
STUDENT AID ADMINISTRATION

11

Obligations by Object Classification, Supplemental, CRRSAA Act (P.L. 116-260)

(dollars in thousands)

Objec

t ss #

Object Class 2022

Actual 

2023

Appropriation

2024

Request

Change, 

2023 to 

2024

11.10 Full-time permanent $5,854 $0 $0 $0

11.31 Full-time temporary 662 0 0 0

11.32 Part-time 3 0 0 0

11.33 Consultants 1 0 0 0

11.51 Overtime 52 0 0 0

11.52 Awards 77 0 0 0

11.80 Other Compensation 1 0 0 0

Subtotal, Personnel Comp. 6,646 0 0 0

12.00 Benefits 2,102 0 0 0

13.10 Benefits for Former Personnel 0 0 0 0

Subtotal, Per. Comp & Ben. 0 0 0 0

21.00 Travel 0 0 0 0

22.00 Transportation of things 0 0 0 0

23.10 Rental payments to GSA 0 0 0 0

23.31 Communications 0 0 0 0

23.32 Postage/fees 0 0 0 0

Subtotal, 23 0 0 0 0

24.00 Printing and reproduction 0 0 0 0

25.10 Advisory and assistance services 0 0 0 0

25.21 Other services 11,269 0 0 0

25.22 Training/Tuition/Contracts 1 0 0 0

25.30 Goods/Services from Gov’t 457 0 0 0

25.40 Operations/Maint of Facilities 0 0 0 0

25.71 Operations/Maint of Equipment 0 0 0 0

25.72 IT Services/Contracts 7,402 0 0 0

Subtotal, 25 19,129 0 0 0

26.00 Supplies 2 0 0 0

31.10 IT Equipment/Software 0 0 0 0

31.30 Other Equipment 0 0 0 0

Subtotal, 31 0 0 0 0

32.00 Building Alterations 0 0 0 0

43.10 Prompt payment interest 2 0 0 0

Total, Obligations 27,881 0 0 0
STUDENT AID ADMINISTRATION

12

Obligations by Object Classification, Supplemental, ARP Act (P.L. 117-02)

(dollars in thousands)

ss # Object Class

2022

Actual 

2023

Appropriation

2023 

Estimate

Change, 

2022 to 

2023

11.10 Full-time permanent $0 $0 $0 $0

11.31 Full-time temporary 0 0 0 0

11.32 Part-time 0 0 0 0

11.33 Consultants 0 0 0 0

11.51 Overtime 0 0 0 0

11.52 Awards 0 0 0 0

11.80 Other Compensation 0 0 0 0

Subtotal, Personnel Comp. 0 0 0 0

12.00 Benefits 0 0 0 0

13.10 Benefits for Former Personnel 0 0 0 0

Subtotal, Per. Comp & Ben. 0 0 0 0

21.00 Travel 0 0 0 0

22.00 Transportation of things 0 0 0 0

23.10 Rental payments to GSA 0 0 0 0

23.31 Communications 0 0 0 0

23.32 Postage/fees 0 0 0 0

Subtotal, 23 0 0 0 0

24.00 Printing and reproduction 0 0 0 0

25.10 Advisory and assistance services 0 0 0 0

25.21 Other services 26,749 3,684 0 -3,684

25.22 Training/Tuition/Contracts 0 0 0 0

25.30 Goods/Services from Gov’t 0 0 0 0

25.40 Operations/Maint of Facilities 0 0 0 0

25.71 Operations/Maint of Equipment 0 0 0 0

25.72 IT Services/Contracts 17,750 0 0 0

Subtotal, 25 44,499 3,684 0 -3,684

26.00 Supplies 0 0 0 0

31.10 IT Equipment/Software 0 0 0 0

31.30 Other Equipment 0 0 0 0

Subtotal, 31 0 0 0 0

32.00 Building Alterations 0 0 0 0

43.10 Prompt payment interest 0 0 0 0

Total, Obligations 44,499 3,684 0 -3,684
STUDENT AID ADMINISTRATION

13

Summary of Changes

(dollars in thousands)

2023 $2,033,943

2024 2,654,034

Net change +620,091

Increases:

2024 

Request

Change

from 2023

Built-in: 

Increase in personnel compensation and benefits (PC&B) for a

proposed 5.2 percent pay raise, benefits increases, and an 

increase of 43 FTE

$303,093 +$22,372

Program: 

Travel 646 +117

Printing & Reproduction 6 +1

Other Services 837,192 +248,413

Training/Tuition/Contracts 1,459 +804

Goods/Services from Govt 40,969 +19,822

Information Technology Equipment/Software 156 +8

Advisory and Assistance Services 134 +1,276

IT Services/Contracts 828,033 +335,445

Supplies 68 +17

Subtotal, increases +628,275

Decreases:

Built-in: 

Operations/Maintenance of Equipment 0 -3,000

Rent, due to consolidation of space 19,184 -5,184

 Subtotal, decreases -8,184

 Net Change +620,091
STUDENT AID ADMINISTRATION

14

Authorizing Legislation

(dollars in thousands)

Activity

2023

Authorized

2023

Appropriation

2024 Authorized 2024

Request

Student aid administration (Higher Education Act 

of 1965, I-D) 01 $2,033,943 To be Determined $2,654,034

Total appropriation 2,033,943 2,654,034

Portion of request not authorized 2,654,034

1 The GEPA extension expired September 30, 2015; reauthorization for FY 2024 is expected through appropriations action
STUDENT AID ADMINISTRATION

15

Appropriations History

(dollars in thousands)

1 The House allowance is shown as N/A because there was no Subcommittee action; Senate allowance reflects 

Senate Subcommittee action only.

2 The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations bill, which 

proceeded in the 114th Congress only through the House Committee and Senate Committee.

3 The levels for the House and Senate allowances reflect Committee action on the regular annual 2017 

appropriations bill; the Appropriation reflects the Consolidated Appropriations Act, 2017.

4 The level for the House allowance reflects floor action on the Omnibus appropriation bill; the Senate allowance 

reflects Committee action on the regular annual 2018 appropriations bill; the Appropriation reflects the Consolidated 

Appropriations Act, 2018 (P.L. 115-141). 5 The levels for the House and Senate Allowance reflect Committee action on the regular annual 2019 appropriations 

bill; the Appropriation reflects enactment of the Department of Defense and Labor, Health and Human Services, and 

Education Appropriations Act, 2019 (P.L. 115-245). 6 The Senate Allowance reflects the Chairman’s mark; the Appropriation reflects the Further Consolidated

Appropriations Act, 2020 (P.L. 116-94). 7 The Appropriation reflects the supplemental funds from the Coronavirus Aid, Relief, and Economic Security Act 

(P.L. 116-136). 8 The level for the House allowance reflects subcommittee action. The level for the Senate Allowance reflects the 

Chairman’s mark; the Appropriation reflects Division H of the FY 2021 Consolidated Appropriations Act, 2021 (P.L. 

116-260). 9 The Appropriation reflects supplemental funds from Division M of the FY 2021 Consolidated Appropriations Act, 

2021 (P.L. 116-260). 10 The Appropriation reflects the American Rescue Plan Act of FY 2021 (P.L. 117-2). 11 The House allowance reflects floor action on the FY 2022 Consolidated Appropriations Act; the Senate allowance 

reflects the Chairman’s mark; and the Appropriation reflects the Consolidated Appropriations Act, 2022 (P.L. 117-

103).

12 The House allowance reflects the regular annual FY 2023 appropriation, which was introduced on the floor; the 

Senate allowance reflects the Chairman’s mark; and the Appropriation reflects the Consolidated Appropriations Act, 

2023 (P.L. 117-328).

Year

Budget 

Estimate

to Congress

House 

Allowance Foot

note

Senate 

Allowance Foot

note

Appropriation

Foot

note

20151 $1,446,924 N/A $1,446,924 $1,396,924

20162 1,581,854 $1,446,924 1,361,700 1,396,924

20173 1,631,990 1,551,854 1,546,854 1,576,854

20184 1,697,711 1,697,711 1,576,854 1,678,943

20195 1,772,000 1,678,943 1,678,943 1,678,943

20206 1,812,000 1,678,943 1,778,943 1,768,943

2020 CARES Supplemental7 40,000

20218 1,883,309 1,768,943 1,868,943 1,853,943

2021 CRRSAA Supplemental9 0 0 0 30,000

2021 Mandatory ARP Supp10 0 0 0 91,130

202211 2,053,943 2,053,943 2,033,943 2,033,943

202312 2,654,034 2,579,034 2,594,034 2,033,943

2024 2,654,034
STUDENT AID ADMINISTRATION

16

Significant Items in FY 2023 Appropriations Reports

Spend Plan

Explanatory

Statement: The agreement directs the Department to provide a detailed spend plan 

of the planned uses of funds under this heading by major activity, and 

quarterly updates on its implementation. This should include, but not 

limited to, detailed breakouts by baseline operations and development 

efforts; and servicing, student aid core systems, IT activities, and other 

Federal Student Aid activities. Further, this should include a crosswalk to 

activities funded under administrative costs and servicing activities, and 

any reallocation of funds between those two activities should be treated 

as a reprogramming of funds, and the Committees should be notified in 

advance of any such changes.

Response: The Department will provide the requested report.

Spend Plan and Quarterly Updates

House: Not later than 60 days after enactment, the Committee directs the 

Department to provide a detailed spend plan of anticipated uses of funds 

made available in this account for fiscal year 2023 and provide quarterly 

updates on this plan (including contracts awarded, change orders, 

bonuses paid to staff, reorganization costs and any other activity carried 

out using amounts provided under this heading for fiscal year 2023.

Response: The Department will provide the requested report.

Contract Extension Notification

Explanatory

Statement: The agreement provides authority to extend current student loan 

servicing contracts in order to ensure an orderly transition to the Unified 

Servicing and Data Solution (USDS). The Department should notify the 

Committee at least 15 days prior to exercising the authority to extend

current contracts.

Response: The Department will notify the Committee as required before exercising 

the authority to extend current contracts.

Quarterly USDS Implementation Briefings

Explanatory

Statement: The agreement further directs the Department to provide quarterly 

briefings on progress related to implementation of USDS.

Response: The Department will provide the requested briefing to the

Committees as directed.
STUDENT AID ADMINISTRATION

Significant Items in FY 2023 Appropriations Reports – continued

17

Quarterly Servicing Contracting Briefings

House: The Department is directed to provide quarterly briefings to the Committee on 

general progress related to solicitations for Federal student loan servicing 

contracts.

Response: The Department will provide the requested quarterly briefing to the

Committees as directed.

Social Work Students

House: The Committee notes that social work students at the undergraduate and 

graduate levels are required to complete hundreds of hours of field experience; 

however, the Committee is concerned that many times these experiences are 

unpaid. In the fiscal year 2024 Congressional Budget Justification, the 

Committee directs the Department to share information around the feasibility of 

using its Experimental Sites authority for a pilot to use Federal Work Study and 

other financial aid funding to support social work students involved in 

internships and field experiences.

Response: The Department recently conducted an experiment under the 

Experimental Sites Initiative that lifted the restriction on payments of 

Federal Work Study funds for students who are working in credit-bearing 

positions. Federal Student Aid (FSA) continues to evaluate the data 

collected for that experiment but has determined that more than 100 

students who were enrolled in social work programs utilized at least one 

of the waivers in that experiment. FSA’s analysis of the broad effects of 

this experiment will consider potential impacts on students’ federal 

student debt levels and persistence but given the Committee’s interest in 

social work program specifically, FSA will also disaggregate findings for 

those students in particular and include those findings in FSA’s 

evaluation report for the experiment. FSA will publish an interim report 

for the experiment, which will include information about social work 

experiences, no later than December 31, 2023.
STUDENT AID ADMINISTRATION

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Student Aid Administration

(Higher Education Act of 1965, I-D)

(dollars in thousands)

FY 2024 Authorization: To be determined1

Budget Authority:

2023 Appropriation2 2024 Request Change 

Personnel Comp. & Ben. Costs $303,093 $325,465 +$22,372

Non-Personnel Costs, excluding

Loan Servicing Costs

623,991 879,947 +255,956

Subtotal, Salaries and Expenses 927,084 1,205,412 +278,328

Loan Servicing Costs 1,106,859 1,448,622 +341,763

Total 2,033,943 2,654,034 +620,091

FTE 1,5503 1,593 +43

PROGRAM DESCRIPTION

The Student Aid Administration (SAA) account provides funds to administer the Federal student 

financial assistance programs authorized under Title IV of the Higher Education Act (HEA) of 

1965. The Title IV programs, which provide funds to help students and families pay for the cost 

of postsecondary education, are the Nation’s largest source of financial aid for postsecondary 

students. The account provides funding to administer the student aid lifecycle including: 

educating students and families about the process for obtaining Federal aid and repaying 

Federal student loans; processing over 17 million student financial aid applications; disbursing 

more than $122.2 billion in Direct Loans, including consolidation loans, and approximately $38.1 

billion in Pell grants during fiscal year 2024; administering a loan portfolio of more than $1.6

trillion; and protecting students and taxpayers by ensuring that Federal resources are used 

appropriately.

The Higher Education Amendments of 1998 established FSA as the Federal Government’s first 

performance-based organization to improve service for students, parents, schools, and other 

program participants; to reduce student aid administration costs; to increase the accountability 

of the officials responsible for administering program operations; and to integrate the student aid 

1 The GEPA extension expired September 30, 2015; reauthorizing legislation is sought for fiscal year 2024.

2 The amounts shown here and discussed throughout the Congressional Justification reflect the Administration’s 

estimated allocation between Loan Servicing Costs and Salaries & Expenses. The Congressional allocation between 

these activities is $975 million Loan Servicing Costs and $1,059 million Salaries and Expenses. Any reallocation of 

funds by the Department will require a reprogramming and notification of the Appropriations Committees. 

3 The 2023 FTE total does not include 26 FTE related to and funded by CRRSAA.
STUDENT AID ADMINISTRATION

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processing and delivery systems. The Offices of Postsecondary Education (OPE), the Office of 

the Under Secretary (OUS), and FSA oversee and administer the Federal student financial 

assistance programs. OPE, under the direction of the Under Secretary, formulates policy for 

these student financial assistance programs and administers other Federal postsecondary 

education programs. In addition, other Department of Education (Department) offices—Office of 

the Chief Information Officer (OCIO); Office of the General Counsel (OGC); Office of Planning, 

Evaluation, and Policy Development (OPEPD) and Office of Finance and Operations (OFO)—

contribute to the policy formulation, administration and oversight of the student aid programs.

The Federal Pell Grant program is the foundation of a low- or moderate-income student’s 

financial aid package. The program provides financial assistance to students attending 

postsecondary education programs, disbursing approximately $26.6 billion to 5.9 million low-and 

moderate-income undergraduate students during the 2022–2023 award year, with an average 

award of $4,512. The maximum Pell Grant award for the 2023–2024 award year is $7,395.

The William D. Ford Federal Direct Loan program drives a significant portion of FSA’s workload. 

The direct loan program lends funds directly to students and their families through participating 

schools. In fiscal year 2024, the Department anticipates it will originate almost $86 billion in new 

Direct Loans, excluding Consolidation Loans.

SAFRA (Student Aid and Fiscal Responsibility Act), Title II, Part A of the Health Care Education 

Reconciliation Act, 2010, ended the Federal Family Education Loan (FFEL) program’s authority 

to originate new Federal student loans. In the FFEL program, private lenders provided funds, 

which are insured by loan guaranty agencies and then reinsured by the Government. Since July 

1, 2010, the Department has originated and serviced all new Federal student loans through the 

direct loan program. FSA continues to administer the FFEL program, while lenders and 

guaranty agencies continue to service and collect some outstanding loans in the FFEL portfolio. 

FSA services government held-FFEL and direct loan program loans through the use of private 

contractors.

See the Student Loans Overview and Student Aid Overview for details on Student Loan 

programs in the fiscal year 2024 request.

Payment Pause

On March 20, 2020, in response to the COVID-19 emergency, FSA began providing temporary 

relief on Department-managed Federal student loans by allowing students to opt into a 

temporary suspension of loan payments and instituting a 0 percent interest rate. One week 

later, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, 

extending the relief through September 30, 2020 to all borrowers with federally-held loans

without requiring borrowers to opt in, while adding several borrower benefits and protections. 

The relief has been extended several times since then. In August 2022, the Biden-Harris 

Administration announced one-time student debt relief to help borrowers at highest risk of 

delinquency or default due to the financial harms of the pandemic. The one-time debt relief 

program was halted by lawsuits brought on by opponents of the program. While the Department 

awaits the Supreme Court’s decision on the one-time debt relief program, the pause on student 

loan payments remains in effect. Payments will resume 60 days after the Supreme Court 

announces its decision. If the program has not been implemented and the litigation has not 
STUDENT AID ADMINISTRATION

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been resolved by June 30, 2023, payments will resume 60 days after that.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2019 1,678,943

2020 1,768,943

2020 CARES Act 40,000

2021 1,853,943

2021 CRRSAA 30,000

2021 Mandatory ARP Act 91,130

2022 2,033,943

2023 2,033,943

FY 2024 BUDGET REQUEST

The Administration is requesting $2.654 billion to administer the Federal student aid programs in 

fiscal year 2024, which is $620 million more than the fiscal year 2023 appropriation. After 

receiving a straight-line appropriation in fiscal year 2023, the funds in this request are critical to 

provide core operations for at least 12 months and implement reforms that improve FSA’s ability 

to serve students and borrowers while strengthening protections and ensuring its vendors are 

able to provide high-quality service. This request also includes funding for a long-term, highquality servicing solution through the full implementation of the Unified Servicing and Data 

Solution (USDS), the execution of the final phase for the implementation of the Free Application 

for Federal Student Aid (FAFSA) Simplification Act and FUTURE Act, and the protection of the 

personally identifiable information of approximately 87 million users.

The fiscal year 2024 request includes the following major categories:

1) Loan servicing activities total $1,448.6 million, a net increase of $341.7 million 

more than the fiscal year 2023 appropriation. The request reflects the transition from 

legacy servicing contracts to USDS and return to repayment, assumes a reduction in 

the portfolio from the President’s debt relief policy, and provides for a full 12 months 

of operations including a smooth transition between the legacy servicers and USDS. 

More information is provided on page 21.

2) Student Aid and Borrower Eligibility Reform (SABER) initiative totals $115.7 million, 

an increase of $9.2 million more than the fiscal year 2023 appropriation. The costs are 

critical for full implementation of the requirements in the FAFSA Simplification Act and 

FUTURE Act and ongoing operations. Additional information is provided on page 27.

3) FSA Information Technology (IT) activities total $184.3 million, an increase of $45.9 

million more than the fiscal year 2023 appropriation. Increased costs are necessary to 

support activities to protect against security breaches, meet compliance of Executive 

Order 14028, and to ensure protection of borrowers’ personal information as well as 

providing the necessary IT infrastructure for FSA’s data storage. More detail is provided 

on page 34.
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4) FSA Core Systems and Other Non-Major FSA activities total $434 million, a net 

increase of $175.8 million more than the fiscal year 2023 appropriation. The fiscal year 

2024 funding request is needed to provide operations, maintenance, and development 

support for core system costs (i.e., Common Origination and Disbursement (COD) 

system, Next Gen Digital and Customer Care (DCC), Next Gen Business Process 

Operations (BPOs), Next Gen National Student Loan Data System (NSLDS), Next Gen 

Partner Participation and Oversight (PPO) initiative, as well as other FSA core systems 

that assist with supporting students and borrowers throughout the financial aid lifecycle). 

Additional information is provided on page 36. 

5) Personnel Compensation and Benefits (PC&B), Overhead, and other Non-FSA 

Activities total $471.5 million, an increase of $47.5 million from fiscal year 2023. The 

increased costs include a proposed 5.2 percent Governmentwide pay raise and 

increased cost of benefits to support 1,428 Full-Time Equivalent (FTE) in FSA, and 

1,593 FTE in total, an increase of 43 FTE (33 for FSA and 10 for other offices) in fiscal 

year 2024 from fiscal year 2023. The 33 additional FTE for FSA in fiscal year 2024 will 

primarily support increased oversight and enforcement, including work generated from 

Borrower Defense applications. Additional information is provided on page 47. 

Loan Servicing Activities: $1,448.6 million

The fiscal year 2024 request includes $1,448.6 million for loan servicing activities, an increase 

of $341.7 million more than the fiscal year 2023 appropriation, which is primarily to support 12 

months of operations and funding for legacy servicing and the transition to the Unified Servicing 

and Data Solution (USDS). 

New Loan Servicing Contracts

Since 2015, the Department has prioritized the rebuilding of the student loan repayment system, 

and the centerpiece of that effort is establishing USDS as the long-term student loan servicing 

solution. FSA is in the process of awarding new loan servicing contracts, which will allow FSA to 

make long-desired changes to the repayment system to improve customers’ experiences and 

outcomes, provide servicers with clear and consistent requirements, and hold servicers more

accountable for preventing delinquency and default, especially among at-risk borrowers. The 

approach to establish USDS builds on the best of previous work while taking lessons learned 

and stakeholder input into account. This strategy begins by awarding long-term contracts that 

make necessary improvements immediately and puts a stronger focus on identifying and widely 

implementing innovative practices that will address persistent issues in student loan and 

servicing performance to support better borrower outcomes. USDS includes the procurement 

and award of new servicing contracts, as well as accompanying improvements across FSA 

systems. USDS was announced in a Request for Information in February 2022.1 FSA published 

the request for proposals in May 20222 and proposals were received in July 2022. Since that 

time, FSA has been evaluating Offerors’ proposals and negotiating with eligible vendors. FSA is 

1 Background and Request for Information on the Unified Servicing and Data Solution (USDS), 

https://sam.gov/opp/799f4f6a2812407985baca278620a753/view.

2 Unified Servicing and Data Solution (USDS), https://sam.gov/opp/a6a01ff283f648fb8840dd35e22a799d/view. 
STUDENT AID ADMINISTRATION

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in the process of making awards. Components of USDS will be implemented on a rolling 

timeline pending available resources in 2023 and 2024.

In 2024, the USDS contracts will go live, providing long-term stability to the Direct Loan program 

and creating a solid foundation for continued improvements to borrowers’ experiences and 

outcomes. Under USDS, new servicers will operate under the most up-to-date cybersecurity 

posture, ensuring that borrower data is secure, that systems are less vulnerable to cyberattacks, 

and that business processes are aligned with new USDS requirements. In 2024, FSA plans to 

leverage the systems that have been created under the Next Gen FSA initiative, launching 

additional investments in Digital and Customer Care (DCC), Business Process Operations

(BPO), the National Student Loan Data System (NSLDS), and the Enterprise Data Management 

and Analytics Platform Services (EDMAPS) to bring the administration of specialty loan 

servicing programs (i.e., Public Service Loan Forgiveness (PSLF), Temporary Expanded PSLF 

(TEPSLF), Total and Permanent Disability (TPD) discharges, and TEACH Grants) into FSA’s 

enterprise of systems and services. This change will provide many benefits to borrowers and

allow for increased oversight of these programs. FSA will also implement single sign-on,

providing borrowers with the ability to use their FSA ID to login to servicers’ websites as well as 

StudentAid.gov, increasing borrowers’ exposure to FSA’s website, tools, and authoritative 

information.

The following pages outline details of the next stages of USDS implementation and path to 

achieving a single repayment portal on StudentAid.gov.

Background

Since the inception of the Federal Direct Loan program, the Department has contracted with 

external vendors (i.e., loan servicers) to service the Department-held portfolio of non-defaulted 

federal student loans. This portfolio includes both Direct Loans and Department-held Federal 

Family Education Loan (FFEL) Program loans. Loan servicers are responsible for collecting 

payments on Federal student loans, advising borrowers on resources and benefits to better 

manage their Federal student loan obligations, responding to customer service inquiries, and 

performing other administrative tasks associated with maintaining a loan on behalf of the 

Department. The current loan servicing contracts were originally awarded by FSA between 2009 

and 2013 through either the Title IV Additional Servicers (TIVAS) procurement or through 

statutorily required non-competitive awards to not-for-profit (NFP) servicers with prior 

experience in the FFEL program. All contracts included terms that allowed them to be extended 

into 2021. FSA then used authority provided by Congress in the 2021 Appropriations Act to 

further extend the contracts with six servicers through December 2023. Authority to add an

additional year extension was provided by the Consolidated Appropriations Act, 2023.

The structure of the legacy contracts – which largely provided servicers with operational 

autonomy, used commercial branding, and lacked appropriate accountability metrics – resulted 

in inconsistency across platforms and servicers, oversight challenges, operational complexity, 

inefficiency, and additional costs. There was a growing consensus that the service being 

provided through these contracts was inconsistent, with untimely and inaccurate responses to 

borrower inquiries and complaints occurring far too often. Moreover, because of the fragmented 

servicing system and lack of reporting on effective practices, it was difficult to gather and 
STUDENT AID ADMINISTRATION

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implement insights about effective or innovative servicing practices, making it difficult for FSA to 

implement servicing practices that meet borrower needs. 

In 2014, improvements were made to the underlying servicing contracts, including, changes to 

the pricing structure to better incentivize positive borrower outcomes. In anticipation of the 

expiration of the legacy servicing contracts, FSA first published a recompete of the legacy loan 

servicing contracts in 2016. Subsequent efforts were made in 2017, 2019, and 2020, all of 

which were ultimately unsuccessful. In the meantime, FSA needed to address the expiration of 

the looming loan servicing contracts, as well as an increasingly complex policy environment and 

maturing technological landscape. 

The Unified Servicing and Data Solution (USDS)

USDS includes the procurement and award of new servicing contracts, as well as 

accompanying improvements across FSA systems and to the borrower experience. USDS was 

announced in a Request for Information in February 2022.1 FSA published the request for 

proposals in May 20222 and proposals were received in July 2022. FSA is focused on making 

awards and preparing the new USDS servicers to go-live before the expiration of the legacy 

servicing contracts.

USDS is a project that falls under the Next Gen FSA initiative, which was put in place in 2017 to 

modernize the way FSA operates and serves customers and partners. While Next Gen includes

the new loan servicing contracts, the initiative also addresses all aspects of FSA’s operations 

and has achieved significant advancements in FSA’s technical infrastructure, tools, and services 

for customers and partners. In addition to USDS, the following projects currently fall under the 

Next Gen FSA umbrella:

- Digital and Customer Care (DCC), which includes a Digital Platform, StudentAid.gov; 

a Marketing and Communications Platform that allows FSA to send targeted, mass 

communications through branded messages; and a Customer Care Platform, which 

consists of a single 1-800 number, a customer relationship management (CRM) tool 

for contact centers and case management, centralized training, and a third-party 

quality monitoring solution.

- Business Process Operations (BPO) vendors, which staff the 1-800-4-FEDAID 

contact center, perform back-office processing, and provide fulfillment services.

- EDMAPS, an enterprise-wide data platform that allows FSA to collect, use, and 

analyze data from disparate sources.

- Next Gen NSLDS, which was rebuilt and launched in 2022 and serves as FSA’s 

repository for Aid information.

- Title IV Origination and Disbursement (TIVOD) modernization, which will establish 

new, long-term contracts for the Common Origination and Disbursement (COD) 

system, NSLDS, EDMAPS, and partner-facing customer service (e.g., a single 

contact number and CRM).

1 https://sam.gov/opp/799f4f6a2812407985baca278620a753/view

2 https://sam.gov/opp/a6a01ff283f648fb8840dd35e22a799d/view
STUDENT AID ADMINISTRATION

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USDS involves 6 components of work:

1. New contract awards, new servicing and cybersecurity requirements with the

USDS servicers, and improved vendor accountability.

2. Transition of specialty loan servicing (TEACH Grants, PSLF and TEPSLF, and

TPD discharges) to StudentAid.gov and the BPO providers.

3. Single sign-on via the FSA ID.

4. Building borrower-facing repayment tools on StudentAid.gov.

5. Creating a unified data model and comprehensive data reporting structure.

6. Developing capacity to perform specialty servicing tasks.

New contract awards

FSA is in the process of developing the USDS technical infrastructure. The USDS contracts will 

go live in 2024, providing long-term stability to the Direct Loan program and creating a solid 

foundation for continued improvements to borrowers’ experiences and outcomes. 

Full implementation of USDS will achieve the Department’s long-established goals of ensuring 

the stability of the loan servicing environment; bringing servicers into compliance with modern 

cybersecurity standards; holding servicers more accountable through a new pricing schema, 

service level agreements, and incentive structure; and ultimately building a single repayment 

portal for federally-managed borrowers on StudentAid.gov.

Transition of Specialty Loan Servicing

Currently, the specialty servicing programs (i.e., Public Service Loan Forgiveness (PSLF), 

Temporary Expanded PSLF (TEPSLF), TEACH Grants, and Total and Permanent Disability 

(TPD)) are managed by a single loan servicer, which introduces several issues for both the 

borrower experience and servicer accountability. Having one vendor manage each program 

means that, when borrowers apply for the program, they are transferred from their current 

servicer to the dedicated specialty servicer. A servicer transition is not only disruptive to the 

borrower, but the process provides the specialty servicer with an account that they have not 

earned based on performance. Additionally, non-specialty servicers have little incentive to 

counsel borrowers toward a specialty program because they would then lose the account, and 

thus any future revenue associated with the borrower. Under the current structure, FSA also

loses leverage in implementing improvements to the programs, as the administration of each

program becomes contingent on the specialty servicer’s tools and pricing. This makes it difficult 

for FSA to make positive improvements in processing and borrower experience without 

extensive negotiations and is often met with the addition of significant one-time and ongoing 

costs.

To solve for these problems, USDS centralizes the specialty programs on FSA’s platforms, 

including StudentAid.gov, with processing work performed by BPO providers. This approach will 

enable better oversight of these programs and improve the quality and consistency of

borrowers’ experiences. This will help FSA begin to achieve the goals of providing borrowers 

with simpler, more effective interactions during repayment; improving FSA’s access to and use 

of data to improve borrowers’ experiences and outcomes; and increasing borrower access to 

clear, accurate, and timely information.
STUDENT AID ADMINISTRATION

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Single sign-on via the FSA ID

Currently, customers can only use the FSA ID to access StudentAid.gov; they must maintain 

different credentials to access their servicer’s website. As a result, once borrowers enter 

repayment, they infrequently log into StudentAid.gov, missing out of many of the automated 

tools and processes that FSA has invested in over the last five years to improve the borrower 

experience. For example, many borrowers forego completing an income-driven repayment 

(IDR) application on StudentAid.gov, opting instead to complete enrollment over the phone with 

their servicer or sending in a paper application. This adds processing time and complexity, 

delaying a borrower’s enrollment in an IDR plan and diverting servicer resources that could be 

devoted to more complex tasks.

The USDS Single Sign-On (SSO) solution will enhance the borrower experience by providing 

one username and password (i.e., FSA ID) to access both StudentAid.gov and servicer web 

sites. Instead of maintaining two sets of credentials, the USDS SSO solution will allow an 

authenticated user to simultaneously use StudentAid.gov and their servicer web site, providing 

borrowers with easier access to the tools that are currently accessed through different 

authentication systems. SSO also provides the benefit of transitioning all borrowers to multifactor authentication (MFA), which is a security protocol that was implemented for the FSA ID in 

2022 but has yet to be implemented in servicers’ authentication systems. Leveraging SSO 

allows FSA to implement MFA in a more efficient and cost-effective manner than if FSA required

each servicer to implement their own MFA solution.

The implementation of single sign-on is an important first step in the ultimate shift of all 

repayment activity to StudentAid.gov, as it ensures that, instead of borrowers having a different 

login for their loan servicer’s website and StudentAid.gov, they are using the FSA ID across all 

websites, increasing borrower traffic to the tools and information on StudentAid.gov. Activities 

will include a phased roll-out of single sign-on functionality with the USDS servicers, additional 

BPO contact center support for borrowers needing assistance in accessing their FSA ID, 

enhancements to self-service functionality (such as account recovery) associated with the FSA 

ID, increases in capacity of the FSA ID system, and proactive communications to aid borrowers

in transitioning from servicers’ authentication methods to the FSA ID.

Building Borrower-Facing Repayment Tools on StudentAid.gov

It has been a long-time goal of FSA to have all federally-managed borrowers navigate their 

repayment journeys on StudentAid.gov, as the current environment requires borrowers to 

manage repayment through their servicer’s website, resulting in borrower confusion and the 

proliferation of third-party debt relief scams that take advantage of the current, fragmented 

system. 

Developing a repayment portal is a major initiative that requires significant investment in FSA 

infrastructure, borrower tools, and communications with borrowers. It is also an initiative that 

carries significant risk should tools not be functional when they are introduced. To address the 

breadth and sensitivity of the project, FSA plans to take a phased approach to building out the 

borrower portal, starting with the award of new servicing contracts (to provide a stable, longterm foundation for enhancements) and the implementation of SSO.
STUDENT AID ADMINISTRATION

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In fiscal year 2024, FSA will begin work to define requirements and develop the design of 

portions of repayment functionality on StudentAid.gov. This will require development of FSA’s

infrastructure, including new Application Programming Interfaces (APIs), a unified data model, 

and finally, multiple new tools for borrowers. FSA anticipates building tools to support repayment

over the course of fiscal years 2024, 2025, and 2026, given the extensive infrastructure 

necessary to support these functions and the sensitivity of these tools to borrowers’ ability to 

manage their repayment journeys.

Creating a Unified Data Model and Comprehensive Data Reporting Structure

Currently, loan servicers use different platforms – with different data models – to service loans. 

While this does not cause to day-to-day problems within a servicer’s platform, it does lead to 

challenges when data must be translated between servicers, such as when accounts are 

transferred or when FSA needs to use data from different servicers for functional processes, 

such as processing payments.

To address these issues, FSA will develop a unified data model that standardizes data from 

disparate servicers’ systems into one consistent record. This unified data model will allow FSA

to collect more data from servicers to enable account management on StudentAid.gov; store 

more servicing data for purposes of oversight and analytics; and simplify the loan transfer 

process by decreasing the amount of data translation that needs to occur when accounts

migrate. Without a unified data model, there will be significant lags in processing data that need 

to be sent to and from servicers/FSA and an increased likelihood of processing errors due to the 

complexity of data translation. 

FSA will work through fiscal year 2024 and into 2025 to develop a comprehensive data model 

that will support receiving more data from USDS servicers. This includes identifying the 

necessary data elements to support full repayment functionality on StudentAid.gov, faster and 

less disruptive loan transfers, and improved monitoring of portfolio performance. During fiscal 

year 2024, FSA will identify necessary data elements, construct a preliminary data model, and 

collaborate with the USDS servicers to refine this data model. FSA will begin to use and iterate 

on this data model in fiscal year 2025 as repayment functionality is built on StudentAid.gov.

Developing Capacity to Perform Specialty Servicing Tasks

Specialty servicing tasks are business functions that have historically been awarded to a single

servicer to support discrete servicing functions that have historically been best supported by a 

single provider rather than all servicers because of their complexity and need for operational

support. These specialty servicing tasks include the Image Repository, Decommissioned 

Servicer Data and Payment Support, FFEL Guaranty Agency Rehabilitation Loan Support, and 

Legacy Loan Consolidation Origination and Disbursement Support Functions. Under USDS, 

FSA envisions supporting these tasks on FSA’s systems (such as EDMAPS) to provide better 

oversight, data accessibility, and operational efficiency. In fiscal year 2024, FSA will begin 

developing the infrastructure needed to support a central Image Repository and will start 

solutioning for the more complex tasks related to payment and consolidation support services.
STUDENT AID ADMINISTRATION

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Return to Repayment

When payments resume, the Department must ensure that the transition back into repayment is 

as smooth as possible. The Department is committed to ensuring that borrowers can 

successfully resume student loan repayment and remain in good standing with their student 

loans and is preparing to assist all borrowers in resuming payments with a particular focus on 

those who are most at risk. The Department will execute a multi-channel communication and 

engagement plan to raise awareness of the resumption of payments and direct all borrowers, 

particularly those who need assistance, towards available resources. FSA will continue to 

collaborate with borrower advocates, Congressional offices, schools, and community-based 

groups when providing return to repayment education. Additionally, media outlets will also be 

used as another avenue for publishing accurate information about how borrowers can navigate 

returning to repayment.

Loan servicers will also play a key role in helping borrowers successfully transition back into 

repayment, and the Department is working to ensure that servicers provide borrowers with 

appropriate outreach regarding payment resumption and assistance to meet their repayment 

needs. Servicers are communicating with borrowers who are enrolled in auto-debit/automated 

clearing house (ACH) and will confirm the borrowers’ enrollment post-payment pause.

Additionally, borrowers will not need to recertify for an Income Driven Repayment (IDR) plan 

until six months following the end of the suspension of payments; other flexibilities have been

offered to borrowers to allow for self-certification of income and family size.

The Department has also established a robust Quality Assurance (QA) framework to oversee its 

extended workforce, including loan servicers. This QA framework leverages industry best 

practices of establishing multiple lines of oversight within FSA and targeted risk-based reviews. 

Specifically, the Department has enhanced operational reporting, established vendor liaisons, 

renewed its focus on customer listening and complaint analysis, and partnered with Federal 

regulators like the Consumer Financial Protection Bureau and the Federal Trade Commission.

The fiscal year 2023 straight-line appropriation from fiscal year 2022 levels poses significant 

risks in implementing these necessary initiatives for a smooth return to repayment. The fiscal 

year 2024 request is even more critical to ensure FSA and service providers have the 

necessary means to support borrowers as they transition back into repayment.

Student Aid and Borrower Eligibility Reform (SABER): $115.7 million

The FUTURE Act amends Section 6103 of the Internal Revenue Code (IRC) and allows for 

certain taxpayer information to be shared with the Department through FSA for the purposes of 

the administering the FAFSA form, Income-driven Repayment (IDR) plans, and the total and 

permanent disability (TPD) discharge program.

The Consolidated Appropriations Act, 2021 amended requirements stated in IRC section 6103 to 

allow individuals to share Federal Tax Information (FTI) among family members. Additionally, 

the law included the FAFSA Simplification Act, which requires FSA to modify the student aid 

eligibility determination, disbursement, and verification process by changing how aid eligibility 

(e.g., Federal Pell grants) is calculated and determined.
STUDENT AID ADMINISTRATION

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The FUTURE Act and the FAFSA Simplification Act fundamentally change the way students 

apply for aid, as well as how institutions of higher education and the Federal Government 

administer that aid. For example, the FUTURE Act and the FAFSA Simplification Act introduce 

complex changes to intricately linked business processes, systems and partnerships including 

the COD system and the NSLDS. Additionally, the successful implementation of the FAFSA 

Simplification Act will depend on a modernized FAFSA backend system. Both legislative 

mandates will also impact the financial aid community (e.g., schools, software vendors, State 

agencies, designated scholarship organizations) and require substantial changes to their 

processes and systems.

The SABER initiative will implement the FUTURE Act IDR and FAFSA solutions and provisions 

of the FAFSA Simplification Act; modernize the FAFSA system through the Award Eligibility 

Determination (AED) solution; manage impacts to the Application Eligibility Determinations 

System (AEDS); and improve communications and outreach to students, parents, borrowers,

and partners. The implementation of the FUTURE Act and FAFSA Simplification Act began in

fiscal year 2020 and will continue through fiscal year 2024 until FSA fully implements the 

provisions of the FAFSA Simplification Act for the 2024–25 award year.

FSA is implementing both legislative mandates in three coordinated areas:

• Implementation of the IRS Interface: Starting in fiscal year 2020 and continuing through

fiscal year 2024, phase one aims to establish FSA’s ability to request and receive certain

FTI from the Internal Revenue Service (IRS) through the FUTURE Act Direct Data 

Exchange (FA-DDX), an interface that enables FSA to request, receive, and process 

federal tax information from the IRS.

o In fiscal year 2020, FSA supported the IRS in establishing the

technical foundation for the FA-DDX.

o In fiscal year 2021, FSA continued to support the IRS in introducing changes

to the FA-DDX to implement the FUTURE Act total and permanent disability 

(TPD) discharge provisions.

o In fiscal year 2022, FSA continued to support the IRS in introducing changes

to the FA-DDX to implement the FUTURE Act IDR and FAFSA provisions.

o In fiscal year 2023, FSA plans to enable the IRS to operationalize the FA-DDX 

interface for both the 2024-25 FAFSA form and the IDR form, while ensuring

FSA can continue implementing changes to systems that are impacted by the

interface such as the Person Authentication System (PAS), COD, and the AED 

solution.

o In fiscal year 2023, the regulatory changes to the TPD discharge program, 

effective on July 1, 2023, eliminated the three-year income monitoring period 

once a borrower qualifies for a TPD discharge. As a result, FSA and the IRS 

continue to focus its implementation efforts on enabling the FUTURE Act IDR 

and FAFSA solutions.
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o Funding in fiscal year 2024 will enable FSA to have the FA-DDX interface fully 

operational. Additionally, funding in fiscal year 2024 will allow FSA to support

enhancements to how the FAFSA and IDR processes leverage federal tax 

information to determine eligibility for student aid and IDR plans. These

enhancements include the implementation of bulk IDR application processing 

and the availability of operational tools to analyze processed FAFSA and IDR 

information.

• Significant Changes to FSA Systems: Starting in fiscal year 2021 and continuing

through fiscal year 2024, phase two includes updates to FSA systems and processes to 

enable the provisions of the FUTURE Act and FAFSA Simplification Act for the 2023–

24 and 2024–25 award years.

o In fiscal year 2021, FSA awarded multiple contracts to begin the development

of the applications and infrastructure that will manage and store FTI. These 

contracts included:

 the FTI Infrastructure, a secure cloud environment that hosts

the applications that manage and store FTI;

 the FTI Module, an application that leverages FTI to determine 

continued eligibility for TPD, calculate IDR monthly payment

amounts, and calculate the Student Aid Index; and

 the FTI Data Mart, an application that leverages FTI to conduct 

analyses and forecasts related to the TPD, IDR, and FSA

programs.

o In fiscal year 2021, FSA released the AED solicitation, which enabled FSA to 

procure the new FAFSA backend system that processes FAFSA forms and 

determines aid eligibility for the 2024–25 award year. Additionally, FSA made 

modifications to several FSA systems and processes such as the COD

system, PAS, NSLDS, and the DCC platform to begin the implementation of 

both legislative mandates.

o In fiscal year 2021, FSA extended the AEDS contract to ensure the continual 

operation of the Central Processing System (CPS) and its associated products 

as FSA procured the new AED solution. Additionally, the AEDS contract 

extension enabled FSA to implement the provisions of the FAFSA

Simplification Act for the 2023–24 award year and ensure the FAFSA form’s 

availability for students, their families, and FSA’s partners including the

o removal of the Selective Service question;  

o removal of the Selective Service match process;

o removal of the questions and worksheet associated to drug 

convictions;

o addition of demographic questions based on the FAFSA 

Simplification Act;

o expansion of the Pell Lifetime Eligibility Used (LEU) restoration; and

o extension of Pell grants to incarcerated students.
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o In fiscal year 2022, FSA awarded the AED solicitation. The AED solution 

replaces the CPS solution and increases FSA’s agility, efficiency, stability, 

and security in delivering changes to students and families. The AED solution 

enables FSA to fully implement the FUTURE Act and FAFSA Simplification

Act for the 2024–25 award year.

o In fiscal year 2022, FSA initiated modifications to many FSA systems and 

processes such as the COD system, NSLDS, DCC, PAS, servicing systems, 

Enterprise Data Warehouse and Analytics platform, Access and Identify 

Management System, and the Student Aid Information Gateway to implement 

both legislative mandates for the 2024–25 award year.

o In fiscal year 2023, FSA plans to operationalize the AED solution for the

2024–25 award year and continue finalizing changes to the systems that will 

be impacted by the FUTURE Act and FAFSA Simplification Act. Additionally, 

FSA plans to start decommissioning CPS.

o Funding in fiscal year 2024 enables FSA to have the AED solution fully 

operational for both the 2024–25 and 2025–26 award years, which will be the 

first instance where the AED solution will handle two concurrent FAFSA cycles.

Funding in fiscal year 2024 also allows FSA to initiate the final stages of 

decommissioning the existing CPS solution. Additionally, funding in fiscal year 

2024 allows for FSA to continuously safeguard and monitor applications and 

systems that will receive, store, and manage federal tax information from the 

IRS.

• Training and Resources for FSA’s Partners: Starting in fiscal year 2022 and continuing

through fiscal year 2024, phase three enables FSA’s work with its partners—schools, 

State agencies, and designated scholarship organizations—as they update their 

systems and processes to fully implement the FUTURE Act and FAFSA Simplification

Act for the 2024–25 award year. Additionally, phase three enables FSA to ensure that 

its customers—students, parents, borrowers, and their families—are properly informed 

of the changes to the FAFSA, IDR, and TPD processes.

o In fiscal year 2022, FSA engaged partners in preparation to implement the 

provisions of the FUTURE Act and FAFSA Simplification Act for the 2024–25 

award year. Additionally, FSA plans to ensure that its customers are properly 

informed of how the FAFSA, IDR, and TPD processes are changing because

of the FUTURE Act and FAFSA Simplification Act.

o In fiscal year 2022, FSA began finalizing outreach materials such as

webinars, fact sheets, guides, and updates to StudentAid.gov and FSA 

Connect in conjunction with FSA’s planned engagements and outreach to its

partners and customers.

o In fiscal year 2023, FSA plans to provide far more expansive and 

robust training, communications, and support to its partners

compared to previous FAFSA cycles.
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o Funding in fiscal year 2024 would enable FSA to sustain the training,

communications, and support activities to its partners. These activities include 

continuous updates to partner communications (e.g., Financial Aid Toolkit, 

Partner Connect), webinars, and preview presentations.

Until the implementation of the FUTURE Act and FAFSA Simplification Act are completed, FSA 

will need to continue its interagency agreements with IRS for the IRS Data Retrieval Tool (DRT), 

which provides applicants access to specific data elements from their individual tax return and a 

secure way to transfer data to complete tax-related sections on the online FAFSA form and IDR 

application. This tool allows federal aid applicants and student loan borrowers a convenient and 

simplified way for applying for aid and options for repayment, while reducing the submission of 

inaccurate financial information.

During fiscal years 2022 and 2023, most of the development activities for the FUTURE Act will

have been implemented and fully operational, including the FUTURE Act solutions (e.g., FTI 

Infrastructure, FTI Module, and FTI Data Mart). Additionally, the AED solution, will be 

operational for the 2024-25 award year and serve as the new FAFSA backend system. FSA 

plans to also decommission the IRS DRT solution for the IDR form by fiscal year 2024 and the 

IRS DRT solution for the FAFSA form by fiscal year 2025.

For fiscal year 2024, the Administration requests $115.7 million for the SABER initiative, $9.2 

million more than the fiscal year 2023 appropriation. The implementation activities supported by 

the SABER initiative include $25.4 million for the development, operations, and maintenance of 

the AED solution, which will serve as the new FAFSA backend system beginning in the 2024-25

award year; $45.2 million for the development, operations, and maintenance of the systems that 

will manage and store federal tax information; and $18.3 for implementation of system and 

process changes based on the FUTURE Act and FAFSA Simplification Act. Additionally, $4.0 

million will enable the continuous operations and development of the FUTURE Act FA-DDX with 

the IRS; $10.8 million will support the CPS legacy system’s operations of the 2023–24 FAFSA 

cycle and subsequent decommissioning; and $12.0 million is necessary for the IRS DRT 

interagency agreements for the FAFSA form.

Federal Student Aid IT activities: $184.3 million

FSA takes seriously the ongoing security threats to operations and the risk of compromising

students’ and borrowers’ personal information within FSA and across institutions of higher 

education. With increased cybersecurity risks across government and organizations, security 

threats may come in many forms including patching vulnerabilities, ransomware, and phishing 

attacks. FSA is dedicated to working with schools to safeguard students’ data and has provided 

multiple presentations to education professionals on FSA’s role in assisting schools with 

addressing cybersecurity findings. Additionally, FSA continues to collaborate with the 

Department’s Office of the Chief Information Officer to ensure compliance with the Federal 

Information Technology Acquisition Reform Act, the Executive Order Improving the Nation’s 

Cybersecurity, (EO 14028), the Federal Zero Trust Strategy, and OMB and Department of 

Homeland Security IT requirements. This requires FSA to improve protection, response, and

remediation capabilities to safeguard sensitive data.

The below descriptions provide details for FSA’s IT activities and investments within the 

Enterprise Technology Directorate.
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FSA Cybersecurity Program: $65.6 million

The FSA Cybersecurity Program protects information assets including data, IT infrastructure,

and applications for the third largest Federal repository of sensitive personally identifiable 

information (PII), as well as a $1.6 trillion student loan portfolio. The FSA Cybersecurity 

Program strives to improve IT security by increasing situational awareness, improving network 

monitoring and continued incident response, conducting formal security authorizations, securing 

operations of FSA systems, managing security vulnerabilities at an acceptable risk level, and 

documenting FSA security guidelines. FSA must comply with the Federal Information Security

Modernization Act (FISMA) of 2014 through testing, verification, and validation of the security 

controls of approximately 75 reportable FSA systems.

In fiscal year 2023, to comply with EO 14028, FSA is in the process of consolidating multiple 

asset databases into a single Enterprise Configuration Management Database (CMDB), to 

facilitate end to end asset visibility. This is expected to take approximately 12 months to deploy. 

In fiscal year 2024, FSA will continue the operations, maintenance, and enhancements to 

address the evolving cybersecurity landscape and the new system related to the implementation 

of the SABER initiative. The fiscal year 2024 request allows FSA to continue to operate and 

enhance the Enterprise CMDB, automate the vulnerability management process, and automate

responses to cybersecurity events. The request supports the EO 14028 through the prioritization 

of major initiatives including mandated logging maturity level requirements, securing High Value 

Assets (HVAs)1, Zero Trust Architecture (i.e., covering maturity models for identity, device, 

network applications, and data), and automation of cybersecurity services. 

The IHE Cybersecurity Division provides technical assistance to institutions of higher education 

in the form of incident response support, assistance remediating Gramm-Leach-Bliley Act 

(GLBA) audit findings, sharing of cyber threat information, and outreach to notify schools of 

available technical resources, provide clarification on general guidelines, and provide 

information on practical implementation and best practices. In fiscal year 2024, new guidelines 

under the GLBA, as well as new requirements concerning the handling of Federal Tax 

Information (FTI) and Controlled Unclassified Information (CUI), will require an increase in 

oversight and outreach activities. Because institutions will receive FTI through the FAFSA 

starting in Award Year 2024-2025, and because FTI is a type of CUI, we are required by 

Executive Order 135562, 32 CFR Part 20023, and an Education Department directive to control 

how the schools use, store and safeguard this information. We estimate a four-fold increase in 

the work of the FSA IHE Cybersecurity Division due to anticipated increases in the number of 

GLBA findings, cybersecurity incidents, and cyber threats, as well as the need for expanded 

communications and outreach.

Finally, the fiscal year 2024 request will support the completion of the Federal Zero Trust 

Strategy (M-22-09) requirements and new programs through the expansion of the Department 

of Homeland Security’s directed continuous monitoring program to the servicers, TIVAS, and 

1 A HVA is an information system critical to an organization that the loss or corruption of this information or loss of 

access to the system would have serious impact to the organization’s ability to perform its mission or conduct 

business. These HVAs may contain sensitive controls, instructions or data used in critical operations, or unique 

collections of data.

2 https://www.federalregister.gov/documents/2010/11/09/2010-28360/controlled-unclassified-information 3 https://www.ecfr.gov/current/title-32/subtitle-B/chapter-XX/part-2002
STUDENT AID ADMINISTRATION

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systems hosted by third party vendors and the integration of automated data feeds to enable 

situational awareness and the monitoring of all FSA information systems.

The fiscal year 2024 request includes $21.3 million more than the fiscal year 2023 

appropriation. This increase will primarily support 12 or more months of operations and 

maintenance that is required since the fiscal year 2023 straight-lined appropriation from fiscal 

year 2022 is covering less than 12 months. Funds are also required to implement additional 

capabilities to move information systems towards compliance with EO 14028.

Identity and Access Management (IAM): $14.0 million

IAM includes multiple systems and capabilities and integrates with all new and legacy FSA 

applications to manage and track two-factor authentication, security training, rules of behavior 

acknowledgement, self-service password resets, and security access policy enforcement for 

privileged users. IAM provides secure, efficient access to FSA systems for approximately 87

million users.

IAM provides the FSA enterprise with enhanced sign-on capability and access control for web 

applications to privileged users (i.e., school administrators, system administrators, and database 

administrators). It also provides integrated horizontal sign-on to multiple applications, thereby 

enforcing standardized security requirements such as identity, password complexity and multifactor authentication.

The fiscal year 2024 request of $14.0 million supports recompete efforts for the operations and 

maintenance of the Access and Identity Management System and Person Authentication 

Service and development and enhancement activities related to Risk-Based Authentication and

Multi-Factor Authentication to support the implementation and execution of EO 14028.

Next Generation Data Center (NGDC): $56.2 million

NGDC serves as the host facility for FSA applications that process student financial aid 

applications (grants, loans, and work-study) and supports payments from and repayment to 

lenders. The NGDC is organized around four types of components: network infrastructure, 

midrange servers (Microsoft Windows platforms, UNIX/Linux platforms), IBM mainframes, and 

components in the cloud. It leverages security measures to ensure the protection of controlled 

unclassified information, increase availability and reliability of services that support FSA 

operations, improve elasticity and scalability of resources to the cloud environment, and 

preserve legacy mainframe capabilities and infrastructure.

Additionally, the data center dedicated circuits provide the telecommunications backbone to 

FSA systems and call centers. These network services and Trusted Internet Connection 

capabilities support system management functions and inquiries into data processing with 

external stakeholders. Data center dedicated circuits include data and voice lines and toll-free 

numbers.

The fiscal year 2024 request includes funding for continued operations and maintenance of the 

NGDC, which includes organic growth within the data center and NGDC cloud environments. 

This investment is necessary for planning the closure of the physical data center and migration 

of applications to the cloud environment. The request represents organic growth within the data 
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center, in addition to scheduled projects (cloud expansion, system migration, EO 14028 

enhancements, Internet Protocol Version 6 transition, and Transport Layer Security 1.3 

upgrade).

The fiscal year 2024 request includes $56.2 million for NGDC, dedicated circuits, and data 

center support, an increase of $8.2 million more than the fiscal year 2023 appropriation, which

will primarily support 12 or more months of operations and maintenance that is required since 

the fiscal year 2023 straight-lined appropriation from fiscal year 2022 is covering less than 12 

months.

FSA IT Management: $16.8 million

FSA IT Management provides essential support to assist the FSA enterprise including the FSA 

Chief Information Officer in developing IT strategy, IT Portfolio Management (PfM), IT Project 

Management, Capital Planning and Investment Control, Enterprise Architecture, software 

engineering and testing services that are critical to the operational support and execution of all 

key FSA business applications.

In fiscal year 2024, the Enterprise Architecture and Engineering (EAE) request is $11.3 million.

EAE provides a full range of architectural and engineering services that provide FSA with the 

necessary services and support needed to continuously plan, maintain, and evolve our 

enterprise architecture. The services enable the organization to have access to information 

about FSA’s IT systems and data to inform investment planning and decisions, as well as 

support analysis and identification of performance gaps, highlighting areas where opportunities 

for improvement, streamlining, standardization, and re-use exist. EAE also provides technical 

design oversight services to analyze, design, plan and implement enterprise solutions to 

successfully execute business and technical strategies in alignment with FSA’s target 

architecture and cloud strategy and implement industry best practices.

This initiative also includes support for subject matter expertise in Enterprise Architecture and 

Capital Planning/PfM to analyze, design, plan and implement enterprise solutions to

successfully execute business strategies. This support assists FSA in structuring IT projects and 

policies to achieve desired business results and be informed on industry trends. IT engineering 

expertise is provided to ensure technical solutions meet FSA requirements and represent 

industry best practices. Project management support provides project governance, project 

prioritization and reporting, risk and schedule management, and project management training. 

The request in fiscal year 2024 for this subject matter expertise is $0.6 million. 

Additionally, the FSA IT Management investment includes $2.3 million in fiscal year 2024 for the 

Development Security Operations (DevSecOps) initiative, which integrates security throughout 

the software development lifecycle, allowing for secure architectural designs, efficient system

integration, and the delivery of secure applications. FSA is developing the required processes, 

governance, and tool recommendations to create and implement (in FY25) an enterprise-wide 

development environment to enable automation, transparency, and a shared responsibility 

across the technology development and operations lifecycle. FSA is adapting where possible

within current processes and while also developing additional processes where any gaps may 

exist, to fully incorporate DevSecOps. In this phase, FSA requires project management support 
STUDENT AID ADMINISTRATION

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and subject matter expertise to tailor a DevSecOps plan for the current and future technology 

environment.

Lastly, the fiscal year 2024 request includes $2.6 million for ECM support; Enterprise Testing 

Services, which provides independent testing for applications; and Rational Support, which 

provides visibility to FSA system changes and manages the risks associated with these 

changes.

The total fiscal year 2024 request for FSA IT Management is $16.8 million, $10.1 million more 

than the fiscal year 2023 appropriation. This increase will primarily support 12 or more months of 

operations and maintenance that is required since the fiscal year 2023 straight-lined 

appropriation from fiscal year 2022 is covering less than 12 months.

Enterprise Software Licensing (ESL): $26.7 million

ESL is the agency’s licensing expense that supports numerous technologies and platforms for 

business systems. This function consolidates and establishes enterprise-wide agreements for 

similar types of software to reduce licensing duplication and gain economies of scale from 

volume pricing discounts. The request supports licensing for many systems and operations 

including, the FAFSA, FSA’s Security Operations, Next Gen DCC, Next Gen Partner Connect, 

Next Gen BPO providers, the SABER initiative, Debt Management, NGDC’s migration to an 

integrated cloud structure, and other enterprise activities.

The fiscal year 2024 request is $26.7 million, the same as the fiscal year 2023 appropriation, to 

fund and maintain operations across the enterprise. 

Enterprise Business Management System (EBMS): $3.9 million

EBMS is FSA’s solution to automate several manual paper-based processes, most of which are 

not currently supported by technology solutions. EBMS enables FSA business units to improve 

internal business processes and workflows unique to FSA processes; provide flexibility in 

adapting to changes in workflows and business rules due to legislative, regulatory, or 

operational requirements; and be responsive to time-sensitive business needs. In addition to 

workflow automation and increased visibility into work progress, key outcomes of the EBMS 

solution are document management, trend analysis, and report generation. These goals are 

also supported by the Enterprise Business Collaboration (EBC) initiative, which provides FSA 

and the Department a platform where the Department can collaborate across the agency with 

Microsoft SharePoint.

The fiscal year 2024 request includes $0.1 million more than fiscal year 2023 appropriation. This

request includes a small increase in organic growth in operations and maintenance activities.

Student Aid Internet Gateway (SAIG): $1.1 million

SAIG and the Electronic File Transfer (EFT) system provide telecommunications and data 

transmission solutions for FSA’s institutions (post-secondary schools, lenders, and guaranty and 

State agencies), the various Title IV application systems, and external government agencies.

SAIG supports the sending and receiving of Privacy Act data for processing and reporting on 

financial aid. The EFT system is used by Title IV application systems to transmit and receive 
STUDENT AID ADMINISTRATION

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data for processing by government agencies including the Social Security Administration, the 

Department of Veterans Affairs, Department of the Treasury, and the Department of Homeland

Security.

The fiscal year 2024 request is $1.1 million for operations and maintenance, $0.1 million more 

than fiscal year 2023 appropriation. A contract recompete for SAIG will occur in fiscal year 2024. 

Existing contract vendor support services will continue during the transitional period to ensure

continuity of operations and maintenance. The fiscal year 2024 request includes organic growth 

to support operations and maintenance activities support for a new Federal Tax Information 

Infrastructure (FTII) cloud environment that will be deployed by early fiscal year 2024.

FSA Core Systems and Other Non-Major FSA Activities: $434.0 million

There are various core systems and FSA activities that assist in Federal student aid delivery 

throughout the student aid lifecycle. Engaging with students, parents, and borrowers; 

communicating with school partners; and originating and disbursing federal aid: these 

interactions all require support from FSA core systems and activities. This section will provide 

details about core systems and the Next Generation Federal Student Aid (Next Gen FSA) 

initiative, which is modernizing systems and business models for engaging with FSA.

The Next Gen FSA initiative started in fiscal year 2017 and has emphasized the importance of 

creating an improved, high-quality customer experience for FSA's millions of students and 

families by streamlining student aid systems and processes through consolidation of websites 

and alignment of supporting operations. Next Gen FSA is transforming various aspects of how 

FSA operates when interacting with customers and partners at postsecondary institutions.

The below sections provide descriptions of some of FSA’s core systems and non-major 

activities in the areas of student and borrower engagement, institution engagement, and data.

 

Student and Borrower Engagement

Next Gen Business Process Operations (BPO): $104.2 million1

The BPO providers supply contact center personnel to operate the 1-800-4-FEDAID contact 

center, known as the Federal Student Aid Information Center (FSAIC). Through the use of BPO 

providers, FSAIC serves the public with information about the federal student aid application 

process, handles the intake of FSA's complaint process, Borrower Defense to Repayment 

Applications, PLUS Loan Credit Decision Appeals, and review of OIG fraud referrals among 

other activities. BPO providers are responsible for handling millions of customer interactions 

including inbound calls, chats, and email inquiries, and physical correspondence in both English 

and Spanish; BPO providers also handle back-office processing tasks to include handling 

complaints, Borrower Defense to Repayment applications, PLUS Loan Credit Decision Appeals,

PSLF Employer Adjudications, and OIG fraud referrals. BPO providers receive ongoing training

from FSA to ensure they are providing customers with accurate and consistent information and 

are treating customers and partners equitably. Customer service representatives have access to 

a CRM tool, which ensures consistent call management workflows, agent access to 

1 BPO costs are not inclusive of specialty loan servicing, which are included in the Loan Servicing Contracts section.
STUDENT AID ADMINISTRATION

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comprehensive information on customers and partners, and the ability for the agent to tap into 

FSA-provided resources when necessary. 

In fiscal year 2023, BPOs will continue to refine the support functions previously supported by 

the Legacy FSAIC vendor, the FSA Feedback System, the FSA Ombudsman, the Borrower 

Defense Hotline, the Office of Inspector General Fraud Referral and Analysis Support Center 

and applicant support services for students. This work is a major step toward providing

enhanced customer support, improving customer service, and providing operational flexibility. 

The $104.2 million for fiscal year 2024, $31.7 million more than the fiscal year 2023 

appropriation, is primarily to support 12 or more months of operations and maintenance. This is

required since the fiscal year 2023 straight-lined appropriation is covering less than 12 months. 

The fiscal year 2024 request also includes planned development activities for expanded telecom 

and data capacity, recompete efforts, and Authorizations to Operate (ATOs) for systems.

Next Gen Digital and Customer Care (DCC): $89.6 million

DCC launched in 2019 as FSA’s digital front door for students, parents, and borrowers. DCC 

allows these customers to interact with FSA through their preferred communication channel 

including web, phone, chat, virtual assistant, email, text, or social media. It includes FSA’s 

single 1-800 number for reaching the FSAIC, the digital platform consisting of StudentAid.gov, 

the customer care platform for the BPO contact centers, the marketing and communications 

platform for email and text messaging, and the Aidan Virtual Assistant. DCC provides modern

tools to ensure students, parents and borrowers see FSA as a trusted and reliable resource in 

managing Federal student aid. DCC will continue to provide operational support and make 

necessary enhancements to existing capabilities as part of its continuous improvement plan. 

Those continuous improvements will allow for more automated processes, which will reduce the 

need for manual activities including faxing and mailing documents, all of which results in a more 

efficient delivery of services to customers.

Customers first interact with FSA when they create an FSA ID and complete their FAFSA on 

StudentAid.gov. They continue to use StudentAid.gov to complete other important steps in the 

aid process, such as completing student loan entrance and exit counseling and signing a master 

promissory note. However, once repayment starts, borrowers interact directly with one of FSA’s 

many loan servicers and receive fewer communications directly from FSA. This can create a 

disjointed, inconsistent, and confusing borrower experience, where borrowers are less likely to 

access and benefit from the tools and services provided on FSA’s website, such as the IDR 

Application and Loan Simulator.

During fiscal years 2022 and 2023, DCC developed increased repayment-related self- service 

functionality on StudentAid.gov, including an e-sign and submit solution for the PSLF Form and

the development of tools for borrowers to manage their TEACH Grants and Total and 

Permanent Disability (TPD) discharge applications. In fiscal year 2024, FSA will continue work 

on developing additional repayment and account management functionality on StudentAid.gov, 

which will ultimately become the single portal for all federally managed borrowers to repay their 

loans. Additionally, the DCC solution will be leveraged to build out and transition specialty 

servicing programs away from loan servicers and to the BPO providers by fiscal year 2024.

The fiscal year 2024 request is $89.6 million. This is $47.2 million more than the fiscal year 

2023 appropriation and is primarily to support 12 or more months of operations and 
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maintenance. This is required since the fiscal year 2023 straight-lined appropriation is covering

less than 12 months. The fiscal year 2024 request also includes development needed to support 

FSA customers with the ability to contact FSA to learn about their loan options, gather their

loan/grant information into a single source, and determine the best repayment plan for their 

particular circumstances. This will include continued enhancement of the digital platform (i.e., 

Studentaid.gov), the Aidan Virtual Assistant, and the customer care platform (e.g. 1-800-4-

FEDAID, CRM, workflows, et cetera) among other back-end integrations. 

Experimental Sites Initiative (ESI): $1.1 million

The Experimental Sites Initiative is authorized under section 487A(b) of the Higher Education 

Act of 1965, as amended, and allows the Department to test the effectiveness of new policy 

approaches by waiving specific statutory or regulatory requirements at the postsecondary 

institutions, or consortia of institutions, approved to participate in the experiments. By 

contrasting the results achieved with the flexibilities to the results under current regulations, the 

Department can obtain data to support changes to regulations and statute. To implement an 

experiment, FSA makes changes to its procedures and systems, collects survey data and 

student-level data on participants in the experiment, and, in collaboration with the Institute of 

Education Sciences, performs analysis of the outcomes of students and institutions that 

participated in the experiment. The fiscal year 2024 request of $1.1 million is $1.1 million more 

than the fiscal year 2023 appropriation. The requested funds will support the improvement of 

FSA’s data collection tools for experiments under the ESI, ongoing system maintenance and 

operations for new and current experiments, and evaluation of ongoing experiments and 

experiments where institutional participation has concluded. These improvements are consistent 

with FSA’s adoption, in partnership with the Institute of Education Sciences and the Office of the 

Undersecretary, of joint principles for designing, implementing, and evaluating experiments

under the Experimental Sites Initiative. The following provides more information on each 

principle.

Developing Experiments. It is critical that, in developing experiments, the Department 

establish a research plan upfront to ensure it aligns with the design of the program. For future 

experiments, the Department will:

• In consultation with Institute of Education Sciences (IES) and FSA, develop a clear

set of answerable research questions;

• Work closely with IES, FSA, and the Chief Economist of the Department in 

determining the appropriate research design and uses of administrative data, 

including conducting feasibility studies (including of institutional capacity and

data availability) in advance and working with other agencies as needed to 

seek access to additional information;

• Prioritize experiments that:

o Are intended to affect student outcomes directly, rather than result in a 

reduction in school administrative burden;

o Have the potential to generate participation by a relatively large

number of schools/students;

o Produce credible experimental or quasi-experimental evidence on the

impact of the experiment; and

o Can rely primarily on administrative data to answer key impact

questions within a reasonable period of time (including initial analyses 
STUDENT AID ADMINISTRATION

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within 3-4 years); and

• Ensure an appropriate research design that is responsive to the research

questions as agreed upon as part of the policymaking process, including by 

OMB, and identify resources to finance that research.

Communicating Around Experiments. It is essential that the Department improve its 

communication with institutions about the experiments in order to address some of the major

challenges we have faced in seeking participation and/or collecting data to support an 

evaluation. For future experiments, the Department will:

• Establish clear timeframes for the experiment internally, while 

acknowledging that experiments may need to be extended to obtain

adequate data to fulfill the evaluation plan for the experiment;

• Clearly communicate to institutions prior to beginning participation in the

experiment both the minimum and approximate maximum timeframe of 

the experiment and the commitments to data reporting and research that 

institutions must make in order to participate; and

• Communicate to institutions that they may be removed from

participation in the experiment if they fail to comply adequately with 

reporting requirements.

Implementing Experiments. The work to ensure policymakers can learn from the outcomes of 

these experiments cannot end with the announcement of its initiation. For future experiments, 

the Department will:

• Assess for each experiment whether the Department has sufficient staff and 

financial resources (e.g., at FSA and/or IES) to implement and evaluate an

experiment prior to a final decision to initiate the experiment;

• Expand FSA’s work to provide technical assistance and quality assurance, 

including through compliance oversight, to ensure institutions are meeting

the obligations of the experiment;

• Publish the biennial implementation reports required by Congress, with

coordination among IES, FSA, and OMB to ensure the reports are 

accurate and useful;

• Utilize surveys, spot-checks, and webinars to ensure consistency in how

institutions implement the experiment; and

• From the beginning, develop a framework for ending the experiment. For 

example, create certain benchmarks to be met, or goals that must be met

to continue the experiment. An approximate maximum timeframe should 

also be developed, understanding experiments may need to be extended to

obtain adequate data to fulfill the evaluation plan for the experiment.

Analysis of Experiments. Critically, the Experimental Sites Initiative presents an opportunity to 

learn about future policy implications from real-world experimentation. These opportunities 

cannot be ignored. For future experiments, the Department will:

• Utilize all available administrative data needed to answer the research

questions for the experiment, including seeking access to other agencies’ 
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40

data where needed and/or expanding institutional data collection to support

the research design as needed;

• Develop a data-storage plan to facilitate long-term follow-up, as appropriate;

• Produce rigorous evaluations of the effects of any experiment designed

to improve student or school outcomes, with the potential for other 

research designs for experiments intended for other purposes; and

• Provide IES, or other research entities, with the data and

relevant documentation necessary to conduct analysis.

Transformation Support Contract: $1.9 million

The Transformation Support contract provides resources to address technical gaps in the 

existing workforce for the Next Gen initiatives and SABER. The resources provided support 

activities such as market research, technical support, and governance requirements. Without 

this critical support the execution of program releases within FSA would be delayed past critical 

milestones.

Institution Engagement and Program Compliance

Title IV Origination and Disbursement System (TIVODS): $102.7 million

Through the TIVODS contract, the COD system will originate and disburse more than $85 billion 

in new Direct Loans, excluding Consolidation Loans, to millions of student recipients in fiscal 

year 2024. COD interfaces with several FSA systems to verify borrower eligibility, enable 

funding, support loan consolidation and income-based repayment applications, provide 

borrower counseling, fulfill reporting and financial reconciliation requirements, and provide

oversight. The BPO vendors started providing contact center and applicant support services for 

students in fiscal year 2022, and those services have transitioned out of the TIVODS contract 

resulting in decreased system costs.

The fiscal year 2024 request of $102.7 million is needed to provide continual operations and 

maintenance and support development activities for optimal system performance through 

January 2025, which is when the current contract expires. This is an increase of $30.3 million 

from the fiscal year 2023 appropriation, because fiscal year 2024 provides funding for the 

remaining period of performance and additional funding is needed for the upcoming contract 

recompete. 

Enforcement: $26.5 million

FSA established an independent Office of Enforcement (Enforcement) in 2021 to bolster its 

capabilities to oversee schools that pose the greatest risk to students and taxpayers. 

Enforcement provides FSA with specialized resources dedicated to proactively uncovering 

school misconduct or high-risk conduct that otherwise may go unchecked, causing significant 

harm to students and resulting in substantial cost to taxpayers. Enforcement’s activities include 

in-depth and targeted investigations of the limited number of schools that engage in serious 

violations and have been shown to impose outsized costs on borrowers and the Title IV 

program. Additionally, the Office of Enforcement implements the Borrower Defense to 

Repayment regulations as well as regulations governing administrative actions and appeals. 
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41

FSA’s budget request for Enforcement for fiscal year 2024 primarily focus on funding two of the 

newer functions in FSA: Investigations and Borrower Defense, as well as the Enforcement front 

office capabilities, including the development of technology to support a robust risk model that 

will enable Enforcement to prioritize its work where it will have the greatest impact.

FSA’s Office of Partner Participation and Oversight (PPO) engages in compliance oversight of

all 5,600 schools that participate in the Department of Education's Federal Student Aid 

programs. The Office of Enforcement is focused on the types of violations that would not 

necessarily be detected through the Department’s standard oversight processes or annual 

compliance audit requirements. For example, certain institutions have been found to have 

systemically provided prospective students with materially false information to induce their 

enrollment and attendance. In those cases, students have been left worse off than if they had 

never enrolled at that institution, and scarce federal resources were misused.

These types of program violations can be extraordinarily costly to students and taxpayers. 

However, they would not necessarily be detected through the Department’s standard oversight 

processes or annual compliance audit requirements, which are focused on compliance with 

various program requirements such as mandatory reporting, program and student eligibility, 

disbursement requirements, and student refunds. Recent history includes examples of 

instances where law enforcement agencies uncovered misconduct not detected through FSA’s 

typical oversight processes. For example, enforcement officials at the Consumer Financial 

Protection Bureau (CFPB) and multiple states’ attorneys general found that Corinthian Colleges 

misrepresented job placement rates, the employment prospects of graduates, and made other 

substantial misrepresentations to prospective students while the for-profit chain-maintained

eligibility for the Title IV program. The fraud uncovered by enforcement investigations ultimately 

resulted in closure of the school, and imposed staggering costs and burdens on students, the 

Title IV program, and taxpayers. On June 1, 2022, the Department announced $5.8 billion in

loan discharges for 560,000 borrowers who attended any campus of a school owned by 

Corinthian Colleges, Inc. The Office of Enforcement will be focused on early identification of 

such misconduct to minimize both the number of borrowers harmed and the cost to taxpayers. 

In addition, the Office of Enforcement will seek to hold schools accountable for such discharges

where appropriate.

The Office of Enforcement is also in the process of developing a risk model aimed at identifying 

schools and service providers potentially engaged in misconduct that could impose significant 

cost on students and taxpayers. The risk model will consider data, such as the number of 

student complaints against a school, completion rates, sharp increases or decreases in 

enrollment, and default rates, in addition to other factors, such as relevant investigations by 

other regulators and whistleblower tips and leads. Utilizing a risk model to prioritize work will 

enable the Office of Enforcement to focus its resources on a limited number of schools deemed 

to pose the highest risk. This would include, where warranted, the initiation of investigations and 

enforcement actions, which could include fines, limitation actions, or termination from the Title

IV program. 

Funding needed to support the Office of Enforcement is modest relative to the size of the 

program, and to other Federal regulators who oversee significant markets and programs. The 

fiscal year 2024 request will enable FSA to identify red flags indicating potential misconduct; 

apply a risk-based approach to prioritizing investigations and administrative actions; support the 
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timely adjudication of borrower defense claims; and signal to Title IV participants that substantial 

misrepresentations and other regulatory violations that harm students and the program will not 

be tolerated.

To accomplish the intended goals of the Office of Enforcement, the Administration requests

$26.5 million specifically for the Interagency Agreements and Staff Support for Borrower 

Defense, Borrower Defense technology needs, and Enforcement Operations. This is an increase 

of $7.1 million over FY 2023 levels which supports the additional adjudication staffing outlined 

below. The increase reflects the resources need to meet the terms of the Sweet settlement 

(described below) and the resource needs identified as the Enforcement Office staffs up and 

identifies the technology and other resources needed for its risk model and investigatory 

activities.

1. Borrower Defense Adjudication Staff: $21.0 million

The $21.0 million would provide the additional staffing the Department needs 

in fiscal year 2024 to address the approximately 355,000 borrower defense 

(BD) claims that are currently pending before the Department, which ED must 

adjudicate according to various federal court orders. This staffing need 

originated with the sharp increase in BD claims that began in 2015 and has 

persisted and increased since then. During that time, the Department has 

faced numerous lawsuits alleging that the Department’s failure to timely 

process borrower defense claims violates federal law, which have led to courtordered discharges of some claimants’ loans and a court-approved settlement 

agreement in the class action lawsuit Sweet v. Cardona (formerly Sweet v. 

DeVos). The Sweet settlement requires the Department to adjudicate 

approximately 250,000 claims by January 2026. Both the Sweet settlement 

and new BD regulations that were promulgated to minimize the risk of further 

delay-related litigation include deadlines for adjudicating claims, with claims 

that are not resolved by the relevant deadline being automatically discharged. 

The $21.0 million request for fiscal year 2024 represents the Department’s 

estimate of the additional staffing needed to provide decisions on all claims 

before the relevant deadlines, assuming this additional funding is sustained in 

future years as well. While significant, $21.0 million in administrative costs is a 

very small fraction of the billions of dollars of loans associated with these 

pending claims. The Office of Enforcement’s other staffing needs are captured 

in FSA’s overall request for personnel. 

2. Borrower Defense Technology Infrastructure (BD): $3.3 million

These funds support the development and operation of systems needed to 

adjudicate borrower defense applications. These include required updates to 

and maintenance of an adjudication platform that will enable FSA to adhere to 

the 2023 borrower defense regulations and the adjudication processes 

governed by the Sweet settlement. It also includes funding to automate the 

process of notifying schools of borrower defense claims asserted by their 

students, a process that until now has been manual. The fiscal year 2024

request of $3.3 million will provide ongoing operations and maintenance and 
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development work to improve current manual processes, increase tracking 

and customer usability information, ensure that schools are notified of claims 

and have an opportunity to respond, and support the Department’s efforts to

provide timely and consistent adjudication decisions to borrowers.

3. Enforcement Operations: $2.2 million

The Enforcement Operations initiative supports the development of 

technology and information systems needed by the Office of Enforcement. 

Currently, Enforcement information management is comprised of Excel 

spreadsheets, SharePoint folders, and siloed information in disparate 

systems used by Enforcement business units. The Office of Enforcement 

does not have a centralized database or the ability to look up a school to 

determine which, if any, of the Enforcement business units may have ongoing 

or previous work relating to a school. The fiscal year 2024 request will support 

development of a system to track Enforcement matters; to compile and 

maintain data and documents relating to internal and external investigations 

and actions relating to schools; and to track information, data, and metrics 

that will be utilized in a robust risk model. The request includes resources for 

a case management and workflow system for Investigations, improved

professional tools for monitoring complaints, and systems for fact-finding and 

evidence management for borrower defense. Additionally, the fiscal year 

2024 request supports access and continual operations and maintenance of 

the Department of Justice’s e-Discovery system, which Enforcement uses to 

review, analyze and organize large document productions relating to 

investigations and borrower defense claims. The Enforcement Operations 

initiative supports the organization’s ability to use a risk-based approach to 

prioritizing work by focusing on schools that create the highest risk to 

borrowers and taxpayers. Lastly, the system will contain performance data 

and dashboards to support strategic planning by Enforcement managers and 

supervisors as well as reporting capabilities that currently must be compiled 

manually. 

Next Gen Partner Participation and Oversight (PPO) initiative: $25.3 million

FSA is transforming the experience for schools and financial aid offices through the 

implementation of the Next Gen PPO Initiative, or FSA Partner Connect. The current landscape 

requires schools to interact with multiple systems to determine student eligibility for aid, process 

awards, and report and reconcile funding information. Many of the processes are heavily 

manual or are dependent on outdated, vulnerable systems.

In early 2021, FSA launched FSA Partner Connect—a new, digital portal that serves as the 

foundational platform for FSA partners—at fsapartners.ed.gov. The FSA Partner Connect 

Release 1.0 features the Knowledge Center, which replaced the Information for Financial Aid 

Professionals website. The redesigned site offers a new look and feel, streamlined information, 

and improved search capabilities. The Knowledge Center also includes the Federal Student Aid 

Handbook presented in a more searchable and user-friendly format that will help schools quickly 

access information on how to effectively administer Federal student aid, which in turn will 

substantially improve students’ and borrowers’ experiences. In addition to the above completion 
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of Release 1.0, Release 2.0, scheduled for fiscal year 2023, is focused on an extensive 

redesign of the Application for Approval to Participate in the Federal Student Financial

Assistance Programs (E-App), which schools use to apply to participate in Title IV programs, 

and the re-engineering of the Postsecondary Education Participants System (PEPS), one of 

FSA’s oldest and most technically vulnerable systems.

The Next Gen PPO initiative also includes additional implementation plans that would integrate 

the remaining partner-facing sites into FSA Partner Connect. Release 3.0 integrates the FSA 

Conference site (fsaconferences.ed.gov) used for the annual FSA Training Conference and the 

SAIG Enrollment site (fsawebenroll.ed.gov), which allows schools and partners to enroll and 

manage data access as well as securely exchange data with FSA systems. These efforts will 

result in the retirement of six individual FSA partner-facing sites.

When complete, Partner Connect will serve as the single-entry point for the various Title IV 

business functions for school and partners and introduce proactive analytical capabilities to

target oversight resources on high-risk schools. This, in conjunction with a plan to centralize and

consolidate partner customer service, will create an opportunity for FSA to further streamline aid 

delivery and oversight processes.

The additional benefits of this investment include improving the partner experience through 

streamlined processes and automation, improving management and oversight capabilities, and 

enhancing FSA’s ability to respond to legislative changes.

The fiscal year 2024 request is $25.3 million, $11.6 million more than the fiscal year 2023 

appropriation in order to support 12 or more months of operations and maintenance. This is 

required since the fiscal year 2023 straight-lined appropriation will support less than 12 months

of operations. The fiscal year 2024 requested increase also includes funding for planned 

development for Partner Connect Release 3.0. 

eZ-Audit: $3.0 million

eZ-Audit is a web-based application for submission of financial statements and compliance 

audits from institutions that participate in the Title IV program, which allows FSA to enhance 

program integrity and improve oversight. The fiscal year 2024 request is $3.0 million, $1.3

million more than the fiscal year 2023 appropriation, which will provide ongoing operations and

maintenance and the necessary support for development work.

Conference Management: $2.4 million

In support of FSA's mission to administer the Title IV student aid programs, FSA hosts an 

annual training program for schools participating in Title IV programs. Given the growth and size 

of the Federal student aid programs and recent changes in student aid policies, programs, and 

procedures, this training conference is critical to support schools participating in these programs 

to properly manage taxpayer resources. This training is part of FSA’s school oversight 

responsibility and increases the integrity of the Federal student aid programs while ensuring 

appropriate stewardship of taxpayer resources.

Conference Management provides support for the annual FSA Conference and FSA’s 

participation in the national financial aid related conferences (e.g., National Association of 
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Student Financial Aid Administrators). Depending upon the training delivery method, FSA trains 

between 6,500 and 16,000 financial aid professionals and disseminates information about Title 

IV programs through these forums. The conferences were held virtually from fiscal years 2021-

2023 due to the COVID-19 pandemic and limited funds. 

Data Management

National Student Loan Data System (NSLDS): $25.0 million

NSLDS fulfills a Congressional mandate from the Higher Education Act of 1992 (HEA) and is 

the hub for student, borrower, and partner data reporting. It maintains student-level data for the 

full student aid lifecycle and provides the core data for most FSA systems. The main function of 

NSLDS is providing administrative data on the provision of Title IV aid and providing the 

electronic data exchange between program participants and the system.

Through the Next Gen FSA initiative, NSLDS was transformed into to a modern, more secure, 

and flexible platform and is a major enabling factor in the ability to deliver an enhanced 

customer experience. The re-platformed NSLDS, which launched in fiscal year 2022, continues

to meet the requirements of the HEA as amended but uses modern technology that better 

integrates infrastructure and data systems. NSLDS also supports the collection and 

dissemination of data related to TEACH Grants, TPD, PSLF, and TEPSLF, allowing FSA to 

transition these activities away from the servicers as part of USDS. This will allow the 

organization’s data system to scale more efficiently. The fiscal year 2024 request of $25.0 

million is $12.7 million more than the fiscal year 2023 appropriation. The increase in fiscal year 

2024 will support 12 or more months of operations and maintenance since the fiscal year 2023 

straight-lined appropriation is covering less than 12 months of operations

Enterprise Data Management and Analytics Platform Services (EDMAPS): $13.9 million

Through the Next Gen FSA initiative, EDMAPS has been developed and is now operated per 

the FSA Data Strategy Plan. The FSA Data Strategy Plan established the FSA Data 

Governance Board and subsequent guidelines regarding FSA’s data architecture. These 

guidelines help to assure that the EDMAPS guiding principles align with the Department of 

Education and the Federal Data Strategy plans, while also providing the flexible data

architecture, which allows FSA to respond to policy changes and maintain consistency with 

priorities expressed in the President’s Management Agenda, Presidential Memorandum on 

Scientific Integrity and Evidence-Based Policymaking, the Evidence Act, and the Federal Data 

Strategy, M-22-09: Federal Zero Trust Strategy. 

Additionally, it assists in advancing the implementation of Executive Order 13985, Advancing 

Racial Equity and Support for Underserved Communities Through the Federal Government and 

Executive Order 14028, Improving the Nation’s Cybersecurity. 

This flexibility in the data architecture provides FSA the tools necessary to respond to data 

requests more efficiently and accurately in support of Federal data initiatives. It also allows FSA 

to collect more data than it has in the past, providing additional insights into FSA programs and 

making data available to support measures of equity for demographic subgroups, improved 

oversight of FSA vendors, and a global view of FSA operations.
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EDMAPS provides a unified data platform and common data environment for FSA to improve 

accuracy and consistency of aid lifecycle data through real-time data access while leveraging 

advanced cybersecurity measures to reduce the risk associated with managing PII. Currently, 

some of FSA’s data infrastructure is fragmented, with information spread in standalone systems 

that are tethered together in a patchwork fashion. EDMAPS brings together the data from some 

of FSA’s largest data platforms, including the NSLDS; FAFSA Processing System (FPS); 

Enterprise Data Warehouse and Analytics (EDWA); DCC; loan servicers; and processing 

systems. FSA has also created new capabilities within EDMAPS to manage and reconcile data

including a Data Lake and Master Data Management. Data from the student aid lifecycle is 

received, loaded, curated, and archived in the Data Repository with the Master Data 

Management establishing a master copy of key data entities after reconciling and resolving 

interface discrepancies among various databases.

As part of USDS and beginning in fiscal year 2024 FSA will develop a comprehensive data 

model that will receive more data from the student loan servicers. This includes identifying the 

necessary data elements to support full repayment functionality on StudentAid.gov, faster and 

less disruptive loan transfers, and improved monitoring of portfolio performance. During fiscal 

year 2024, FSA will identify necessary data elements, construct a preliminary data model, and 

collaborate with the USDS servicers to refine this data model.

The fiscal year 2024 request of $13.9 million, $8.5 million more than the fiscal year 2023 

appropriation, will primarily support 12 or more months of operations and maintenance. This is 

required since the fiscal year 2023 straight-lined appropriation provided funding for less than 12 

months of operations. The fiscal year 2024 request is also necessary to support new products, 

services, and additional capacity to cover annual growth of data and services.

EDWA: $11.5 million

EDWA is FSA’s enterprise data warehouse that includes multiple toolsets and an analytics

platform with data including the full Title IV lifecycle spanning over 18 years. EDWA leverages 

analytics and reporting efforts to meet the increased data requests of internal and external 

customers. It provides the enterprise accurate, timely, and repeatable information while also 

allowing for data-driven decision making. As a component of EDMAPS, EDWA is being 

integrated with the Next Gen Master Data Management and Data Lake (both of which are 

existing components in EDMAPS). This will provide more timely and robust data for analytics

and reporting purposes. EDWA is also a part of the data infrastructure within EDMAPS that 

supports Federal initiatives consistent with those described in the EDMAPS section.

EDWA has been leveraged in daily operations to help borrowers achieve better outcomes 

through outreach to borrowers at risk of default and those who are at risk of being defrauded.

The fiscal year 2024 request of $11.5 million, $7.4 million more than the fiscal year 2023 

appropriation, will primarily support 12 or more months of operations and maintenance that is 

required since the fiscal year 2023 straight-lined appropriation from fiscal year 2022 is covering 

less than 12 months. This includes operations and maintenance of the warehouse and 

BI/analytical tool environments. Each year, operations and maintenance for the data warehouse 

increases as FSA houses new datasets and toolsets and operationalizes more models and data

products. The additional funding will also support delayed development activities now planned in 

fiscal year 2024, including data augmentation and development work with expanded servicer 
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data feeds in support of the planned new USDS servicing contract, implementing a fraud model 

between EDWA and the FPS, and building and operationalizing a new statistical model to lead 

to improved customer outcomes.

Financial Management System (FMS): $7.3 million

FMS consolidates and manages all financial transactions from other FSA systems; facilitates 

reconciliation and internal program management and reporting; and tracks and manages 

payment processing for Federal Direct Loan originations and Pell Grant awards. FMS enables 

the continuation of all FSA grant, loan, and loan guaranty activity and supports the mission of 

delivering aid under Title IV programs. The fiscal year 2024 request of $7.3 million, the same as 

the fiscal year 2023 appropriation, supports the operations and maintenance of FMS. 

Personnel Compensation and Benefits (PC&B), Overhead and Other Non-FSA Activities:

$471.5 million

PC&B: $325.5 million 

The Administration’s request for SAA in fiscal year 2024 includes $325.5 million in PC&B to 

support a total of 1,593 FTE. This includes 1,428 FTE for FSA and 165 FTE outside FSA who 

perform student-aid related activities but are located in the Office of Finance and Operations, 

the Office of Chief Information Officer, Office of the General Counsel, Office of Postsecondary 

Education, Office of the Under Secretary, and the Office of Planning, Evaluation and Policy 

Development. The $22.4 million increase in fiscal year 2024 supports an increase of 43 FTE

above the 2023 appropriation. Of this increase, 33 additional FTE are being requested for FSA

in fiscal year 2024 to primarily support increased oversight and enforcement, including work 

generated from Borrower Defense applications. An additional 4 FTE are being requested in 

OPEPD to bolster the Department’s student loan modeling efforts. The remainder of the FTE 

increase will largely be used to perform accreditation work and help respond to an increasing 

volume of FOIA requests. The increase also supports a 5.2 percent pay raise, projected benefits 

increases, awards, and overtime. 

Overhead and Other Non-FSA Activities: $146.0 million

The SAA account also provides funding to non-FSA offices to support FSA’s mission and the 

management of the student aid programs. It includes funds for departmental support activities, 

such as central computer services and financial management system operations, rent, and 

other overhead. It also includes activities carried out in other offices, such as 

the annual financial audit of FSA, negotiated rulemaking, and budgetary cost estimation.

The total request in fiscal year 2024 for these activities is $146.0 million, $47.5 million above the 

2023 appropriation, primarily for increases in enterprise cybersecurity. 

Rent: $14.0 million 

Rent payments to the General Services Administration for FSA-occupied space will total $14.0 

million for fiscal year 2024, $5.2 million less than the 2023 appropriation. The Department has 

been engaged in a multi-year effort to reduce space, including consolidating FSA space in the 
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Union Center Plaza building into the Lyndon Baines Johnson Headquarters Building (LBJ). 

Centralized Information Technology: $62.4 million 

Combined funding for central computer services and telecommunications will total $62.4 million 

in fiscal year 2024, $22.7 million more than the fiscal year 2023 appropriation. This increase is 

primarily for enterprise cybersecurity programs. 

Centralized Support: $69.4 million 

Other non-pay central support services, including background investigations, guard services, 

security, and departmental training and development courses, will total $69.4 million in fiscal 

year 2024, $1.3 million more than the fiscal year 2023 appropriation. 

Student Loan Modeling Investment: $2.4 million

One key activity managed by the Office of Planning, Evaluation and Policy Development is 

Student Loan Modeling. As mentioned previously, the Administration is requesting 4 additional 

FTE to help bolster this function. In addition, the fiscal year 2024 Request includes $2.4 million

in non-pay funding, a $0.6 million increase from the FY 2023 appropriation. The Student Loan 

Modeling investment provides support for developing cost estimates and budgetary impacts of 

student loan policies affecting the $1.6 trillion current portfolio. Given the magnitude of the 

portfolio, improving the accuracy of the cost estimates of the student loan programs is vitally 

important. The Department’s financial reporting, informed policy making, and effective 

monitoring of Government borrowing by Treasury all rely on accurate cost estimates. This 

investment is critical for the projection of future cost estimates and will support 1) continued 

development of a borrower-based microsimulation student loan cost model, 2) validation 

support for credit models and 3) ongoing support of the current student loan model. Student 

Loan Modeling is comprised of the following: 

Microsimulation Model Development

In order to estimate student loan costs more accurately, provide more detailed analysis of 

program effects, and better inform student loan policy, this investment aims to develop and 

implement a borrower-based microsimulation model. This model will consist of multiple 

components, most significantly the Servicer Emulator, which will process borrower and loan 

events to calculate cash flows, and the Event Generator, which will simulate borrower and loan 

events. Full development of this model is expected to be highly complex and rely on a 

combination of Department, interagency and vendor support. The Department expects the 

microsimulation model to be fully operational in fiscal year 2025 for the FY2027 Budget. 

• Servicer Emulator: The Department currently has an interagency agreement with the 

Department of Treasury to develop a borrower-based (i.e., microsimulation) cash

flow model, otherwise known as the Servicer Emulator. The Servicer Emulator 

portion of the model replicates the events and actions that occur during the life of a 

loan. The fiscal year 2024 request of $595,000 will be used to fund the agreement to 

continue development of the model. 
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• Event Generator: In fiscal year 2020, the Department awarded a contract for the 

Microsimulation Event Generator. The design phase of this project was completed in 

fiscal year 2022. The implementation phase has commenced and is funded through 

fiscal year 2024 with $2,936,880 obligated in FY 2022. The contractor has reviewed 

the existing student loan model and assumptions, started evaluating potential data 

sources and has developed the initial designs for the Event Generator’s loan 

modules. 

The design feasibility report was finalized in FY 2022, and a final design report was 

submitted with some updates in early FY 2023 in response to external review, 

Department comments, and data availability. The fiscal year 2024 request of 

$462,423 funds training and technical support for the event generator 

microsimulation model development. 

Model Validation 

The Department engages with an independent vendor to provide validation of its student 

loan models. Vendor support has been used to review modeling methodology changes 

to the collections assumption; PSLF modeling; and the Death, Disability, and Bankruptcy 

assumption, and review updates to the IDR model. The specific credit models validated 

are determined on a priority basis using an assessment of model risk. Planned work for 

fiscal year 2024 continues review of the IDR model and the microsimulation servicer 

emulator, and additional assumptions based on updates made in fiscal year 2022. The 

fiscal year 2024 request is $540,750. 

Technical Support

The Student Loan Modeling investment request for fiscal year 2024 also, includes 

$658,756 for continued support of the current student loan cash flow model, server 

maintenance and upgrades necessary to house the models, accompanying data and IT 

administrative support. 

Credit Reform Support and Analysis 

The Department has additionally engaged contractor support to address credit reform 

analysis and documentation needs, particularly those related to financial and budget 

reporting. Various tasks include generating audit documentation, developing a 

comprehensive catalog of data elements, preparing analyses of model output, providing 

expert analysis of various credit reform, and financial reporting issues related to the 

student loan models. The fiscal year 2024 request for Credit Reform Support and 

Analysis is $406,000.

Other Non-FSA Activities: $11.8 million 

Other non-FSA activities, including negotiated rulemaking, College Scorecard support, 

centralized financial reporting support, and data collection, will total $11.8 million in fiscal year 

2024, $500,000 more than the fiscal year 2023 appropriation. 
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PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information including strategic goals, 

objectives, measures performance targets and data and an assessment of the progress 

made toward achieving program results. At the beginning of fiscal year 2023, FSA 

released the FY 2023–2027 Strategic Plan, which describes the organization’s new goals

and objectives. The FY 2023-2027 Strategic Plan will serve as the basis for FY 2023-2024 

performance metrics and targets. 

The fiscal year 2022 data will close out the FY 2020-2024 Strategic Plan.

Strategic Goal 1: Empower a High-Performing Organization 

For FSA to continue to excel as a high-performing organization and meet the challenges

of the current environment, it must invest in the knowledge, skills, and abilities of its 

employees. To meet the expectations outlined in the FY 2020-2024 Strategic Plan, it is 

essential that staff are trained, aligned, and equipped to provide best-in-class customer 

service while fulfilling the fiduciary responsibilities of the organization.

Strategic Objective 1.1: Improve employee engagement and workplace inclusion to

develop and retain talent, improve employee satisfaction, and engage in effective 

succession planning.

Performance Metric 1.1. Improve Federal Employee Viewpoint Survey score: Employee 

Engagement Index. FSA’s scores will improve the first year and continue to increase 1–2 

percent annually.

Metric Definition: OPM FEVS measures employees' perceptions of whether, and to what extent, 

conditions and characteristics of successful organizations are present in their agencies. The 

Engagement Index assesses the critical conditions conducive for employee engagement (e.g., 

effective leadership, work which provides meaning to employees, etc.). It is made up of three 

subfactors: Leaders Lead, Supervisors, and Intrinsic Work Experience.

Year Target Actual

2018 67.7–72.7 62.0

2019 61.0–63.0 61.0

2020 62.0–63.0 70.0

2021 71–72 74.0

2022 75-76 73.0

Note: This metric will be replaced with 4.3.A. Federal Employee Viewpoint Survey: 

Employee Engagement Index from the FY 2023-2027 Strategic Plan.

Additional Information:

FSA did not meet its FEVS target with the Employee Engagement Index (EEI) result of 

73%. Its decline can be attributed to a decline in two of three subfactors - Leaders Lead 

and Intrinsic Work Experience. Leaders Lead score dropped to 61% from 62% and the 
STUDENT AID ADMINISTRATION

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Intrinsic Work Experience score dropped from 76% to 75%. The third subfactor, 

Supervisors remained constant at 84% in fiscal year 2022. 

 

As a large organization with multiple high priority initiatives, staff workload can impact 

employee engagement and morale. FSA plans to conduct pulse surveys and focus 

groups to supplement data from FEVS, which is an annual measurement tool. Additional 

data can help detect shifts in morale or engagement prior to the annual survey.

 

Strategic Goal 2: Provide World-Class Customer Experience to the Students, Parents,

and Borrowers We Serve

FSA will modernize its systems and operations to deliver world-class customer and 

partner experiences. FSA will be able to quickly respond to the ever-changing financial aid

environment and consistently be a trusted resource for students and families.

Strategic Objective 2.1: Ensure that all students can easily access information on federal 

student aid, apply for federal student aid and have information on repayment options.

Performance Metric 2.1.B. Percentage of high school seniors submitting the FAFSA.

Metric Definition: A primary goal of FSA is to encourage FAFSA completion among high school 

seniors. 

Year Target Actual

2018 66.4–68.4 67.4

2019 67.0-69.0 65.9

2020 64.0-66.0 63.8

2021 66.25 60.87

2022 60.9 63.0

Note: The target for FY22 was changed to 60.9 in accordance with Department of 

Education and FSA leadership guidance and is reflected in the ED FY22 Annual 

Performance Report. This metric will be replaced with 2.2.A. Customer satisfaction 

survey score associated with completing the Free Application for Federal Student Aid® 

from the FY23-27 Strategic Plan.

Additional Information:

FSA met its annual target on this metric. 

 

Federal Student Aid continues to support the National College Attainment Network and 

other

organizations that work with college access groups across the country to encourage high 

school seniors to file a Free Application for Federal Student Aid® (FAFSA®). Though the 

number of high school seniors filing a FAFSA has increased, the percentage of first-time 

returning filers has decreased. 

 

In fiscal year 2021, due to the impacts caused by COVID-19, FSA did not meet the goal 

of having 66.25 percentage of high school seniors file their FAFSA. As a result, the target 
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for FY22 was adjusted to reflect projections on continued impacts in the coming years. 

 

Performance Metric 2.1.D: Persistence among first-time filing aid recipients

Metric Definition: This metric helps track performance across one of the desired 

outcomes of federal student aid and its impact on program completion. By following firsttime filing aid recipients—such as college freshmen or non-traditional students, into their 

second year—it is possible to see whether FSA is making improvements in how 

applicants are translating the aid that they receive into educational persistence.

Note: Formerly 5.1.E in FSA FY 2020 Annual Report. This metric will be sunset in FY22.

Additional Information:

FSA did not meet its target for this metric with a result of 80 percent. COVID-19 pandemic effects, a 

tight labor market, rising wages, and continued concern over the cost of college and student loan 

debt are all outweighing efforts by FSA, the Department, and outside organizations to promote 

persistence and these negatively impacted our ability to meet this metric. This past year, FSA 

conducted additional email outreach to first-time FAFSA filers who had not returned to file a FAFSA 

form for the fall of 2022. This outreach was effective and resulted in an increase in returning student 

FAFSA filing. However, the increase was not enough to allow FSA to reach its goal, likely due to the 

impact of the external factors listed above.

 

Note: The FY 2023-2027 Strategic Plan will serve as the basis for fiscal year 2023 performance 

metrics and targets. 

 

Strategic Objective 2.2: Provide seamless, easy, personalized digital interactions equal with top 

financial institutions in the delivery of financial aid products and services.

Performance Metric 2.2.E. Recurring campaign email delivery volume for outreach and 

communications to customers.

Metric Definition: This metric measures the recurring emails that are delivered through the internal 

communications tool. Recurring campaigns are defined as communications that FSA sends on a 

consistent cadence that are not tied to immediate transactional interactions and have a yearly 

precedence, such as the Renewal campaign reminders. This metric helps to gauge the commitment 

to consistent and proactive communications.

Year Target Actual

2017 78.7–80.7 82.6

2018 81.6–83.6 82.5

2019 82.0–84.0 82.8

2020 83.0–84.0 81.0

2021 81.0 81.1

2022 81.1 80.0
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Year Target Actual

2018 N/A N/A

2019 N/A N/A

2020 Baseline 32.2 million

2021 33.8 million 41.7 million

2022 41.7 million 49.8 million

Note: Formerly 2.2.F in FSA FY 2020 Annual Report. This metric will be replaced with 2.3.D. 

Email Campaign Helpfulness from the FY 2023-2027 Strategic Plan.

Additional Information:

FSA met its target for this metric with a result of 49.8 million. Improvements FSA conducted 

include revamping email templates, improving data integrations between Marketing 

Communications Platform (MCP) and systems, as well as testing and optimization efforts to 

continuously improve its email communications for its borrowers. The testing and optimization 

efforts, and revamped template designs, have led to notable improvements to FSA’s 

engagement such as higher open and click rates. The revamped templates allowed the emails 

to match the brand and styling of StudentAid.gov and FSA, which enabled more trust and 

consistency as a trusted source of information. FSA’s priority is to continue onboarded 

communications within the MCP for transactional and recurring campaigns, update data 

integrations within the MCP to ensure faster data loading and execution, and additional data 

analysis to evaluate and improve communications based on past performance and industry 

benchmarks.

 

Note: The FY 2023-2027 Strategic Plan will serve as the basis for fiscal year 2023 targets; this 

performance metric appears to be reflected in the plan’s Strategic Goal 2, Advance Equity and 

Access to Student Financial Assistance, under Strategic Objective 2.3. Provide accurate, 

seamless, easy and customized interactions throughout the student aid lifecycle. 

 

Performance Metric 2.2.G. Customer Satisfaction Survey(s) for StudentAid.gov site and 

associated tools.

Metric Definition: This metric intends to measure customer satisfaction with the StudentAid.gov 

website. These customer satisfaction surveys will assist FSA in developing additional tools and 

offering website improvements based on customer feedback. 

Year Target Actual

2018 N/A N/A

2019 N/A N/A

2020 Survey development and

implementation No survey developed

2021 Survey development and 

implementation Developed Survey

2022 Baseline year to establish targets Baseline 

Note: Formerly 2.2.H in FSA FY 2020 Annual Report. This metric will be replaced with 2.3.A 

StudentAid.gov Digital Satisfaction from the FY 2023-2027 Strategic Plan.
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Additional Information:

FSA met its target of establishing a baseline for this metric. The implementation of a customer 

feedback management software platform and OMB Circular A-11 compliant surveys were key 

organizational initiatives that supported this strategic objective in fiscal year 2022. The customer 

feedback management platform and Circular A-11 surveys were implemented in November 

2021. Results are available in real-time and deep dive analyses of survey data are done 

quarterly for each channel. The platform includes artificial intelligence-driven text analytics that 

allows FSA to more easily mine feedback for trends and escalate any feedback that warrants 

action. The procurement of a customer feedback management software platform greatly 

expands FSA’s capacity to both offer surveys across channels, and better analyze structured 

and unstructured feedback from customers. By putting in this work up-front and dedicating 

resources to improve it over time, FSA will be automating the analysis of unstructured feedback 

to get deeper, more relevant insight on customer sentiment, desires, and pain points from their 

open-ended survey feedback.

Strategic Goal 3: Increase Partner Engagement and Oversight Effectiveness

Strategic Goal 3 is focused on how FSA will assist schools, third-party servicers, and financial 

institutions to deliver federal student aid, collect borrower payments seamlessly, and safeguard 

data integrity through oversight and monitoring. FSA will also ensure these institutions 

understand and comply with Title IV requirements and other relevant laws, policies, and 

procedures.

Strategic Objective 3.1: Provide effective oversight of FSA’s partners utilizing a comprehensive 

suite of monitoring tools.

Performance Metric 3.1.A. FSA will annually conduct an Institutional Review for its participating 

partners including schools, third-party servicers, and financial institutions.

Metric Definition: This metric measures the performance of holistic comprehensive compliance 

reviews of institutions relating to certification actions, deficient audit resolutions, flagged 

financial statements, program reviews, method of payment actions, and technical assistance.

The percentage represents the number of institutions that received a compliance review 

compared to the total number of participating institutions. Data Source: Postsecondary 

Education Participants System (PEPS).

Year Target Actual

2018 N/A N/A

2019 N/A N/A

2020 40.0% 51.0%

2021 60.0% 62.6%

2022 80.0% 80.0%

Note: This metric will be replaced with 3.1.A. Review for participating partners that have been 

provisionally certified from the FY23-27 Strategic Plan.
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Additional Information:

PPO has successfully and consistently met and exceeded annual target goals for Strategic 

Objective 3.1.A. As of October 1, 2022, the School Eligibility and Oversight Service Group 

(SEOSG) completed 4,819 comprehensive compliance reviews for 6,020 Title IV participating 

partners (80.0%); meeting the annual target goal of 80%. PPO looks forwards to maintaining its 

record of success in achieving new strategic objectives upon the release of a new five-year 

performance plan for FY 2023–2027 replacing the current FY 2020–2024 Strategic Plan.

The targets associated with borrower defense were met due to improved collaboration with 

external partners to support the fact-finding process and a commitment by FSA leadership to 

establish group findings where possible. Borrower Defense Group's (BDG) workflow is heavily 

influenced by external factors including litigation, a shifting regulatory framework, and policy 

implementations. However, the staff continues to adapt to these factors. 

In fiscal year 2022, BDG finalized additional findings of fact and conclusions of law and 

successfully proposed multiple groups of borrowers for group discharge while simultaneously 

adjudicating individual cases in a timely manner. As a result, FSA was able to adjudicate over 

86,000 individual applications since October 1, 2021 — exceeding the goal of 65,000.

Strategic Goal 4: Strengthen Data Protection and Cybersecurity Safeguards

Data protection and cyber security are two of the most important responsibilities FSA has today. 

Prioritizing the integrity and confidentiality of student and borrower data is a necessary step in 

the execution of Goal 4 within the FSA strategic plan.

Strategic Objective 4.1: Implement business partner and vendor systems that house, manage, 

and provide systems supporting FSA business processes, outreach and awareness focused on 

oversight, enforcement, infrastructure, systems, and data.

Performance Metric 4.1 Increase partner/vendor cybersecurity effectiveness by reducing the 

total number of FSA system assessment findings by 20 percent per year.

Metric Definition: This metric measures the number of findings discovered during security 

control assessments, including ongoing security authorization activities, that are indicative of 

potential cyber security issues leading to a breach of privacy information or the potential 

compromise of an information system.

Year Target Actual

2018 N/A N/A

2019 N/A N/A

2020 1,800 3,561

2021 2,800 3,976

2022 2,240 19,252

Note: This metric will be replaced with 5.4.A. Cybersecurity Maturity-Level (OIG Maturity Levels) 

from the FY 2023-2027 Strategic Plan.

Additional Information:
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The performance measure under this strategic objective is to increase partner/vendor 

cybersecurity effectiveness by reducing the total number of FSA system assessment findings by 

20% per year. The increased number of systems enrolled and participating in the Ongoing 

Security Authorization program ensured that FSA had a closer to real time view of the 

maintenance of cybersecurity requirements implemented at the systems. The Ongoing Security 

Authorization is an assessment program that supports the Authorities to Operate (ATO). 

Additionally, for new systems being developed, ATOs were being granted for shorter durations 

and with strict stipulations that must be met to maintain that ATO in the future.

 

The key challenges facing this objective were to address the barriers to fully implement 

mitigating strategies and achieve expected targets, including updating contract language, 

communicating new or evolving cybersecurity laws and federal requirements, and creating more 

visibility into the real-time security posture of third-party service providers. FSA launched the 

following initiatives to respond to these challenges: 

• New cybersecurity standards and regulatory compliance requirements increased the scope 

of the threat landscape and the compliance requirements. 

• Enrolled third party service providers in the CDM program, 

• Added specific cybersecurity requirements language in contracts for all new systems and 

updated language in contracts for existing systems, and

• Ensured the appropriate number of subject matter experts support the cybersecurity of FSA

systems.

All activities are anticipated to be completed by the end of fiscal year 2022 Quarter 2 in 

accordance with the requirements of Executive Order 14028, Improving the Nation’s 

Cybersecurity. The success of the information systems to manage risk is reflected in the 

Department's Cybersecurity Risk Framework Scorecard.

Strategic Goal 5: Enhance the Management and Transparency of the Portfolio 

Portfolio management and organizational transparency are important initiatives to drive the 

success of achieving FSA’s mission and vision. These efforts require enhanced analytic, risk 

management, performance management and quality management capabilities to provide better 

outcomes for students and greater value to taxpayers.

Strategic Objective 5.1: Improve the management and transparency of FSA’s student loan 

portfolio.

Performance Metric 5.1.A. Initiate monthly reporting to the public through the FSA Data Center.

Metric Definition: This metric had a target to pilot self-service module in fiscal year 2022. 
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Year Target Actual

2018 N/A N/A

2019 N/A N/A

2020 Establish number of

public reports

56

2021 Standardize reports

and pilot self-service 

module

Standardized reports and 

pilot completed

2022 Implement selfservice module for 

reports

Target not met

Note: This metric will be replaced by 5.1.A. Data Maturity Assessment from the FY 2023-2027 

Strategic Plan.

Additional Information:

FSA did not meet its target to release a self-service module on the FSA Data Center website 

due to delays in implementing the data visualization software in its warehouse environment.

In 2022, the Enterprise Data Directorate (EDD) within FSA deployed a new data visualization 

software in its enterprise data warehouse in preparation for launching a more robust self-service 

module to continue to expand and improve the FSA Data Center in alignment with stakeholder 

needs. Since the deployment of the visualization software in August 2022, FSA staff has been 

testing the self-service module and assessing the necessary steps to deploy the module on the 

website. In addition to continuing ongoing testing, FSA must secure funding for enterprise 

licensing to deploy the tool on the website.

Despite not meeting the target, FSA has taken steps to train FSA staff to assist with the FSA 

Data Center reporting to reduce the timeline it takes for creating the monthly and quarterly 

reports. As a result, subject matter experts within FSA have more time to analyze and 

understand the impact of data prior to submitting data reports to agency clearance, and results 

get published on the website more quickly.

FY23-24 Performance Information 

Strategic Goal 1: Improve Customer Service and Outcomes for Students and Borrowers

FSA intends to outperform the standard for excellent customer service by transforming our 

organization, enhancing borrower outcomes, and collectively keeping the promise to improve 

opportunities for students and families to make informed decisions on financial aid for college 

and student loan repayment. These improvements will provide a superior customer experience, 

resulting in positive repayment outcomes and reduced defaults.

Strategic Objective 1.1: Simplify the student loan repayment process to reduce future 

delinquency and default rates and improve accessibility of loan forgiveness programs.

Performance Metric 1.1.A: Number of borrowers that received loan forgiveness.

 

Metric Definition: A primary goal of FSA is to encourage FAFSA completion among high school 

seniors.
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Year Target Actual

2023 Baseline TBD

2024 2% above baseline TBD

Performance Metric 1.1.C: Percentage of borrowers submitting applications through the PSLF 

Help Tool.

 

Metric Definition: This performance metric measures the percentage of borrowers that start and 

complete the Public Service Loan Forgiveness (PSLF) Help Tool by generating a PSLF form.

 

Year Target Actual

2023 Baseline TBD

2024 Maintain or increase from prior 

year

TBD

Strategic Objective 1.2: Enhance the quality of contact center and loan servicing operations, 

leveraging data to assess progress toward customer service and product delivery standards.

Performance Metric 1.2.A: Percentage of contractor interactions with passing score of 95%.

 

Metric Definition: The metric measures the percentage of contractor interactions that a reviewed 

and receive a passing score as defined in their Service Level Agreements.

 

Year Target Actual

2023 ≥95% TBD

2024 ≥95% TBD

Strategic Goal 2: Advance Equity and Access to Student Financial Assistance

Each year, FSA helps millions of Americans achieve their education dreams. Access to student 

aid is central to FSA’s mission: Funding America’s Future, One Student at a Time. Advancing 

equity and access to financial assistance options will help eligible students and families gain the 

benefits of education and training beyond high school. 

Strategic Objective 2.2: Simplify the Free Application for Federal Student Aid (FAFSA®) 

process.

Performance Metric 2.2.A: Customer satisfaction survey score associated with completing the 

Free Application for Federal Student Aid®.

 

Metric Definition: This performance metric measures the applicant’s satisfaction with completing 

the Free Application for Federal Student Aid®.

 

Year Target Actual

2023 8.5% TBD

2024 Based on previous year TBD
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Strategic Objective 2.3: Provide accurate, seamless, easy, and customized interactions 

throughout the student aid lifecycle.

 

Performance Metric 2.3.A: StudentAid.gov Digital Satisfaction.

 

Metric Definition: This performance metric measures customers’ overall satisfaction with

StudentAid.gov.

 

 

Year Target Actual

2023 Maintain (+/- .25) TBD

2024 Maintain (+/- .25) TBD

Performance Metric 2.3.D: Email Campaign Helpfulness.

 

Metric Definition: This performance metric measures the helpfulness of FSA’s email campaigns 

as rated by customers who receive campaign emails.

 

Year Target Actual

2023 Maintain (+/- .25) TBD

2024 Maintain (+/- .25) TBD

 

 

Strategic Goal 3: Strengthen Engagement and Accountability for Educational and Financial 

Institutions 

 

FSA achieves its mission of funding America’s future with the assistance of participating 

educational and financial institutions; without them, FSA would not be able to fulfill its mission. 

In addition to overseeing compliance with Title IV program laws and program rules, training and 

technical assistance is provided to schools, third-party servicers, and financial institutions to 

support their compliance efforts. 

Strategic Objective 3.1: Utilize a comprehensive suite of monitoring tools to oversee 

participating partners.

Performance Metric 3.1.A: Review for participating partners that have been provisionally 

certified.

 

Metric Definition: This metric measures the completion rate of holistic comprehensive 

compliance reviews of provisionally certified institutions.

 

Year Target Actual

2023 Baseline TBD

2024 60% of participating partners TBD

 

Strategic Objective 3.2: Build enforcement capabilities, in coordination with federal and state 
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partners to protect students, families, and taxpayers from deceptive, fraudulent, or harmful 

practices in the student aid marketplace.

 

Performance Metric 3.2.A: Build and implement an FSA Enforcement Strategy that incorporates 

a risk model for identifying schools that pose risk to students and taxpayers.

 

Metric Definition: This performance indicator measures the percentage of individual Borrower 

Defense applications adjudicated within timeframes stipulated by applicable regulation or court 

order, or two years when no timeframe exists.

 

 

Year Target Actual

2023 Maintain (+/- .25) TBD

2024 Maintain (+/- .25) TBD

Strategic Goal 4: Increase Workforce Capabilities 

 

In any industry or sector, an organization’s most important asset is its talent. FSA strives to be a 

model federal employer, creating an environment where individuals maximize their potential and 

teams collectively move the agency forward. Achieving FSA’s mission requires attracting, 

developing, and retaining a skilled and agile workforce. The agency remains committed to 

investing in the knowledge, skills, and abilities of each of its employees. Diversity, equity, 

inclusion, and accessibility are foundational to this effort.

 

Strategic Objective 4.1: Promote workplace diversity, equity, inclusion, and accessibility.

 

Performance Metric 4.1.A: Federal Employee Viewpoint Survey – DEIA Index

 

Metric Definition: The Federal Employee Viewpoint Survey DEIA Index (formerly New Inclusion 

Quotient Index) measures inclusive environments. Includes items related to Habits of Inclusion: 

Empowering, Fair, and Supportive.

 

Year Target Actual

2023 Baseline TBD

2024 Maintain or increase by 1% TBD

 

Strategic Objective 4.3: Foster an organizational culture that promotes a productive, connected, 

and engaged workforce, particularly in a hybrid workplace environment.

 

Performance Metric 4.3.A: Federal Employee Viewpoint Survey: Employee Engagement Index

 

Metric Definition: OPM Federal Employee Viewpoint Survey measures employees' perceptions 

of whether, and to what extent, conditions and characteristics of successful organizations are 

present in their agencies. The Employee Engagement Index assesses the critical conditions 

conducive for employee engagement (e.g., effective leadership, work which provides meaning 

to employees, etc.) It is made up of three subfactors: Leaders Lead, Supervisors, and Intrinsic 

Work Experience.
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Year Target Actual

2023 Maintain or improve by 1% TBD

2024 Maintain or improve by 1% TBD

 

Strategic Goal 5: Increase Workforce Capabilities 

 

Efficient internal operations are essential to achieving FSA’s mission. As FSA strives to become 

more customer-centric and outcome-based, the organization will continue to focus on 

operational and process improvement. By modernizing technology, leveraging data analytics, 

and tracking organizational performance, FSA can serve as a model for federal management 

best practices. Boosting operational efficiency requires cross-agency collaboration on data, 

finances, technology, and acquisitions. Every business unit and employee contribute to 

operational efficiency, and FSA aspires to fully capitalize on our organizational and individual 

capabilities.

Strategic Objective 5.1: Strengthen enterprise-wide data analytics and information management 

to foster a customer-centric, data-driven, performance-based organization.

 

Performance Metric 5.1.A: Data Maturity Assessment

 

Metric Definition: This performance indicator measures assessed scores of the 20 key data 

process areas in the Annual Data Maturity Assessment.

 

Year Target Actual

2023 56 TBD

2024 58 TBD

 

Strategic Objective 5.4: Improve cybersecurity detection, prevention, and protection ensuring 

data confidentiality, integrity, and availability.

 

Performance Metric 5.4.A: Cybersecurity Maturity-Level (OIG Maturity Levels)

 

Metric Definition: This performance indicator measures the agencies’ progress toward achieving 

outcomes that strengthen Federal cybersecurity.

 

Year Target Actual

2023 60% at Level 3 or higher TBD

2024 70% at Level 3 or higher TBD
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Account Summary Table

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