The American Fintech Council (AFC) has voiced its concerns regarding the technological and programmatic challenges faced by the U.S. Department of Education's Office of Federal Student Aid (FSA). In a letter addressed to the FSA, AFC highlighted how these issues are obstructing students' access to financial aid and complicating borrowing and loan repayment processes, thereby affecting millions of students nationwide.

Phil Goldfeder, Chief Executive Officer of AFC, stated, "AFC believes that FSA’s current operational struggles convey a critical need for immediate reform." He emphasized the necessity for a modern approach in today's digital-first financial services industry to better serve students. Goldfeder expressed readiness from AFC members to collaborate with FSA to enhance their processes and ensure students receive timely and accurate data and services.

The letter pointed out problems such as the troubled rollout of the Free Application for Federal Aid (FAFSA) form and delays in providing data to student loan servicers. These delays have resulted in companies being unable to offer clear guidance to borrowers, causing confusion during important decision-making periods. The absence of precise information has further impeded students' ability to manage loans effectively and access suitable repayment options.

Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, noted in the letter: “Taken together, these issues convey a distinct need for FSA to significantly reform its processes and systems in a manner that is befitting of the modern financial services industry and the digital-first consumer demand underpinning it.” He warned that without addressing these key areas, the student loan system would remain fragmented and inefficient.

AFC is dedicated to working with both FSA and Congress to implement secure access to student loan data, which would enable borrowers to take advantage of employer-matching contributions under the SECURE 2.0 Act of 2022. According to AFC, updating these systems is essential for students to fully benefit from such programs.

As an organization focused on standards-based practices, AFC represents leading fintech companies and innovative banks offering embedded finance solutions. Its mission is promoting transparency, inclusivity, and customer-centricity in financial systems by supporting responsible innovation in financial services.

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