Federal Student Aid’s Performance Measures and Indicators for Returning Borrowers to Repayment

Submitting OIG:

Report Description:

The inspection sought to determine whether the Federal Student Aid office (FSA) established performance measures and indicators for returning borrowers to repayment. We found that FSA needed to establish effective performance measures and indicators to evaluate its performance for returning borrowers to repayment. Although FSA and the Office of the Undersecretary established operational and strategic objectives and operational goals for returning borrowers to repayment, they were not written in specific and measurable terms. In addition, although FSA identified several data metrics as performance measures and indicators for returning borrowers to repayment, they did not include clearly defined targeted percentages, numerical values, milestones, or measurements. Without effective performance measures and indicators, FSA is unable to assess whether it has made progress toward achieving its goals and objectives or if adjustments are needed to improve its performance. Overall, the lack of effective performance measures and indicators may negatively impact FSA’s ability to effectively identify, analyze, and respond to risks related to returning borrowers to repayment.

Date Issued:

Wednesday, August 14, 2024

Agency Reviewed / Investigated:

Department of Education

Submitting OIG-Specific Report Number:

I23NY0150

Component, if applicable:

Federal Student Aid

Location(s):

Agency-Wide

Type of Report:

Inspection / Evaluation

Special Projects:

Pandemic

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
FY24-I23NY0150-81424v100508SECURED.pdf	3.73 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1.1	Open	Yes
We recommend that FSA’s Acting Chief Operating Officer require FSA to establish objectives for returning borrowers to repayment in specific and measurable terms that are easily understood and allow for the assessment of performance toward achieving objectives.
1.2	Open	Yes
We recommend that FSA’s Acting Chief Operating Officer require FSA to establish effective quantitative or qualitative performance measures and indicators for returning borrowers to repayment.
1.3	Open	Yes
We recommend that FSA’s Acting Chief Operating Officer require FSA to ensure that appropriate control activities are designed and implemented to assess FSA's performance in returning borrowers to repayment, such as reviews of performance measures and indicators; comparing achievements to plans, goals, and objectives; and comparing actual performance to planned or expected results.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

1.1

Open

Yes

We recommend that FSA’s Acting Chief Operating Officer require FSA to establish objectives for returning borrowers to repayment in specific and measurable terms that are easily understood and allow for the assessment of performance toward achieving objectives.

1.2

Open

Yes

We recommend that FSA’s Acting Chief Operating Officer require FSA to establish effective quantitative or qualitative performance measures and indicators for returning borrowers to repayment.