What does the Office of Federal Student Aid do?

Updates published annually

The Office of Federal Student Aid (FSA) is a subdivision of the Department of Education responsible for providing financial assistance to students pursuing postsecondary education. The agency administers federal grants, loans, and work-study funds to help students cover the cost of college or career school. It also offers resources and guidance to help students and families navigate the financial aid process. It was established in 1965.

In FY 2024,

$161B

was spent by the Office of Federal Student Aid

In FY 2024,

59.9%

of Dept. of Education spending was by the Office of Federal Student Aid

How much does the Office of Federal Student Aid spend?

The Office of Federal Student Aid spent a net total of $160.7 billion in fiscal year (FY) 2024. This was 59.9% of the $268.4 billion spent by the Department of Education, which itself was 4% of all federal spending. The FSA ranked first among ED subdivisions in net spending.

Net spending is the difference between agency spending and any financial accounts generating funds from the agency’s own activities, like fees or rent. When these funds offset all spending, net spending appears negative. Some agencies tend to operate with positive net spending while others will register negative net spending sometimes or often.

The Office of Federal Student Aid ranked first among Department of Education divisions in net spending in 2024.

ED net spending by division, FY 2024

Like the overall federal budget, agency spending may shift over time due to population growth, changes in policy and programs, and emerging problems to address. Adjusting for inflation, the Office of Federal Student Aid’s federal spending has increased from $24 billion in 1980 to $160.7 billion in 2024.

The Office of Federal Student Aid’s federal spending in FY 2024 was higher than in FY 1980.

Yearly federal net spending by FSA, adjusted for inflation (2024 dollars), FYs 1980–2024

Since 1980, the Office of Federal Student Aid's spending has increased 569.8%, while overall spending has increased 193.7%.

As a percentage of the overall federal budget, a positive number means agency net spending made up some positive share of total federal spending; a negative number means that net generated funds offset a portion of total spending. FSA spending grew more than overall federal spending since 1980, which means that its share of the federal budget increased. In 2024, FSA accounted for 2.4% of overall federal spending.

Major legislation, internal or global economic conditions, and acute events like the COVID-19 pandemic can affect spending year to year. For example, the federal budget fluctuated during the pandemic, rising from $5.3 trillion (in 2023 dollars) in 2019 to $7.7 trillion in 2020 and $7.8 trillion in 2021.

The Office of Federal Student Aid’s share of federal spending in FY 2024 was higher than in FY 1980.

Net spending by FSA as a share of federal spending, FYs 1980–2024

Most federal spending can be categorized as direct or indirect. Direct spending refers to money the federal government spends on budget items such as federal programs, employee salaries, and debt interest. Indirect spending refers to federal transfers to state and local governments.

In FY 2024, all of the Office of Federal Student Aid's spending was direct.

The chart below outlines all net FSA spending.

How did the Federal Student Aid spend its budget in 2024?

Federal government net spending isolated to None, FY 2024

How many people work for the Office of Federal Student Aid?

Some 1,440 of the 2.31 million total civilian federal employees work for the Office of Federal Student Aid as of September 2024. This is 22.6% more people than the division staffed in 2010.

The number of federal employees working for the Office of Federal Student Aid has increased 22.6% since 2010.

Number of federal employees working for FSA, September 2010–2024

The Office of Federal Student Aid accounts for 0.062% of the overall federal workforce. As the number of federal employees has changed, so too has the way the workforce is organized, with resources allocated to agencies depending on government priorities. The division constituted a larger share of the overall federal workforce in September 2024 compared to 2010 (0.056%).

While the number of employees on an agency’s payroll contributes to that agency’s expenditures, some agencies have relatively few employees compared to their budget or vice versa, giving them an outsized share of either the budget or the workforce. According to the most recent data, the Office of Federal Student Aid's share of the workforce (0.062%) is smaller than its share of the budget (2.4%).

Who leads the Office of Federal Student Aid?

The Office of Federal Student Aid is led by the Chief Operating Officer (COO). This individual is appointed by and reports to the Secretary of Education. The term length for the COO is not fixed and can vary based on the discretion of the Secretary of Education.

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Methodology

USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.

Page sources

USAFacts endeavors to share the most up-to-date information available. We sourced the data on this page directly from government agencies; however, the intervals at which agencies publish updated data vary.

Office of Personnel Management
FedScope
Office of Management and Budget and US Department of the Treasury
Budget of the US Government and Monthly Treasury Statement