Secretary Betsy DeVos Delivers Remarks at Federal Student Aid Conference

Secretary of Education Betsy DeVos today told a gathering of 5,000 financial aid administrators in Reno, Nevada that the federal student aid system is an “untamed beast” that cannot fulfill its mission because of the structure of the programs set up by Congress.  She called for drastic structural reforms, saying she wants the entire Office of Federal Student Aid (FSA) divested from the Department of Education into an independent federally owned corporation managed by an apolitical Board of Directors.  The structure would be like that of a commercial bank, and the Board would not report to the Secretary of Education.  DeVos didn’t say who the Board would report to, although in the past she has indicated that the Treasury Department should manage the federal student loan programs. 

Click here for a memo prepared by Harrison Wadsworth further summarizing her remarks. 

Please email Harrison Wadsworth with any questions or requests for clarification.