36. Increase funding for the Office of Federal Student Aid.

Finance 09.6.24

Here’s what the federal government can do:

  • Congress should increase funding for the Office of Federal Student Aid.

Congress should increase funding for the Office of Federal Student Aid (FSA) to better serve all students. To better fulfill its mission, FSA requires increased funding and investments to build stronger systems, provide borrower support, and ensure that their infrastructure can meet the demands of today’s students.

The federal government contributes to higher education mostly through financial aid, such as Pell Grants awarded directly to students. This aid is administered by FSA, which also provides information to families about how to apply for aid and assistance throughout the financial aid process. However, the agency’s ability to serve college students is in peril due to years of stagnant funding, as most recently shown by the poorly executed rollout of the Free Application for Federal Student Aid (FAFSA), which has complicated the pursuit of college and posed significant barriers to students and their families.[i] Consequently, millions of students and families are struggling to navigate and engage with the higher education system.


[i]Granville, Peter. “FAFSA Fallout: Application Dropoff Threaten to Widen College Gaps,” The Century Foundation. June 27, 2024. https://tcf.org/content/report/fafsa-fallout-application-dropoff-threatening-to-widen-college-gaps/.