It was announced on Friday that Richard Cordray is stepping down as the chief operating office of the Office of Federal Student Aid, the arm of the Education Department responsible for overseeing its $1.6 trillion student portfolio.
Cordray, who was also the first director of the Consumer Financial Protection Bureau, will leave his post in June, according to published reports. He spent more three years at the Education Department and helped overhaul how student loans are collected. His departure comes as the office is attempting to change the Free Application for Federal Student Aid, or FAFSA, process, which has had its share of challenges.
“We are grateful for Rich Cordray’s three years of service, in which he accomplished more transformational changes to the student aid system than any of his predecessors,” Secretary of Education Miguel Cardona said in announcing Corday’s departure. “It’s no exaggeration to say that Rich helped change millions of lives for the better.”
Similar to his tenure running the CFPB, Cordray was no stranger to enforcement actions. He revived the Office of Federal Student Aid’s enforcement unit, which had been disbanded during the Trump Administration, and took steps like withholding payments to student loan servicers because of how they were conducting business.
Cordray oversaw the moratorium that was placed on student loan servicing and collections during the COVID-19 pandemic and then the end of that moratorium and the resumption of payments for millions of individuals.
Before joining the CFPB, Cordray was the Attorney General of Ohio and has been linked to top jobs in the Federal Reserve. Cordray unsuccessfully ran for governor of Ohio in 2018.
