Federal Student Aid’s Use of Pandemic Assistance Student Aid Administration Funds

We found that as of November 30, 2022, FSA obligated nearly 100 percent of the $161.1 million in appropriations it received for pandemic assistance student aid administration funds. Nine FSA business units obligated approximately $157.8 million (98 percent) of the total pandemic assistance student aid administration funds, with one business unit, the Next Gen FSA Program Office, accounting for 78 percent of the obligations. The pandemic assistance student aid administration funds were used for personnel compensation and benefits, information technology systems and services contracts, and contractual services contracts. As of November 30, 2022, FSA had approximately $3.2 million remaining in unobligated ARP funds. As of April 4, 2023, specific plans for how those funds will be used were still under development. On June 3, 2023, as a result of the enactment of the Fiscal Responsibility Act of 2023, unobligated balances of ARP student aid administration funds were permanently rescinded. FSA stated that prior to the enactment of the Fiscal Responsibility Act it had plans in place to use the remaining ARP funds to support the end of the pandemic-related pause in repayments.