An Analysis of a Recent GAO Report on Federal Student Aid System Oversight
The Government Accountability Office (GAO) has released a report, GAO-25-107396, that examines the Department of Education's management of the new FAFSA Processing System (FPS). The report provides a detailed review of the agency’s contract oversight and system testing practices for this critical system, which underpins the federal student aid process.
The report identifies several key findings, prepared for congressional requesters.
Findings on Contract Oversight
The GAO’s review indicates that the Department of Education’s Office of Federal Student Aid (FSA) did not fully implement its established processes for monitoring contractor performance. The report notes that as of May 2025, the agency could not provide the status of all contractual requirements for the system, stating that it was no longer tracking them. This raises questions about the agency’s ability to ensure that all required work under the contract is being performed.
The report also found that the FSA was not validating contractor performance data. Furthermore, the agency was unable to demonstrate that key contract and project management staff had complied with federal certification and training requirements related to the system's development.
Findings on System Testing
Regarding system testing, the GAO found that the FSA did not consistently apply leading practices. The report notes that test cases; used to determine whether the system is working as intended; lacked information that would allow them to be traced back to the system's requirements. According to the report, this was partially due to a lack of agency guidance on what information should be included in test cases. Additionally, the FSA does not have a plan to guide future user testing efforts.
Recommendations
The GAO's report concludes with seven recommendations for the Department of Education. The main recommendations focus on improving contract oversight, ensuring staff receive proper certifications and training, and developing appropriate testing guidance and plans. The report states that while the FSA agreed with four of the recommendations, it did not indicate agreement or disagreement with the remaining three. The GAO maintains that all of its recommendations are warranted.
The report offers an objective assessment of the challenges associated with managing a large-scale government IT system and highlights areas for potential improvement.
