Maria Carrasco
October 27, 2026
Reports concerning the Trump administration’s rumored plan to separate Federal Student Aid (FSA) from the Department of Education (ED) into an independent agency by October 2027 have raised several questions for schools. To address these questions, NASFAA has put together an explainer detailing the state of play, background, and feasibility of the administration’s possible plans. This is a developing story, so stay tuned to Today’s News for the latest updates.
Current Reporting
The Washington Sun recently reported that ED is planning to separate FSA from the department into a new independent agency by October 1, 2027, with Richard Lucas, acting chief operating officer of FSA, spearheading the move with the Office of Management and Budget. Lucas first told staff at ED about this move in late September, the Washington Sun found.