JANUARY 2024 - Federal Leaders Can Clear the Way for State Access to Federal Student Aid Data

Oct 15, 2026

Uploaded by Callum

JANUARY 2024 outlines how federal leaders can enable states to access Federal Student Aid (FSA) data securely and in role-based ways. It explains why policymakers and families need better evidence linking financial aid and debt to college enrollment and completion. The text highlights that unclear guidance across FERPA, the HEA, and the Privacy Act has discouraged states and institutions from integrating FSA data into their statewide longitudinal data systems (SLDSs). It then calls for updated guidance so institutions can share FSA data with SLDSs for research, evaluation, and program improvement, illustrated by Ohio’s approach.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

FSA Data Access and Its Importance

Why access to FSA data matters for students, families, and policymakers

FSA by the Numbers

FY2022 processing and funding scale

Barriers from Conflicting Legal Guidance

Overlap among FERPA, HEA, and the Privacy Act

Federal Leaders’ Role in Removing Barriers

Updating privacy and financial aid guidance for SLDS linkage

Example: How Ohio Is Navigating the Challenge

JANUARY 2024 FEDERAL LEADERS CAN CLEAR THE WAY FOR State Access to Federal Student Aid Data People need access to data to navigate their post-highschool experiences, including postsecondary education. Policymakers need to better understand how financial aid and debt relate to college enrollment and completion. And students and their families need to make informed decisions about their postsecondary options—requiring data not only about degree and program options and quality but also about how much financial aid they may have access to for financing their education. States are best positioned to provide, contextualize, embed into tools, and interpret federal student aid (FSA) data for many different audiences. Federal leaders currently govern access to this data and have an opportunity to make changes that ensure that states can provide secure, role-based access to this data to individuals, the public, and policymakers. Allowing states to access FSA data and connect it to their state data systems will enable state leaders to improve their understanding of student success in postsecondary pathways; develop more effective counseling tools that high schools and college access counselors can use to support students in making informed choices about postsecondary pathway options; and develop strategies, policies, and investments that support equitable access to postsecondary pathways. FSA by the Numbers FISCAL YEAR 2022 16.9 million+ Free Application for Federal Student Aid (FAFSA) forms processed by the US Department of Education’s (ED) Office of Federal Student Aid 9.8 million+ postsecondary students and their families receiving over $111 billion in federal student aid Source: US Department of Education, Federal Student Aid, Federal Student Aid: Fiscal Year 2022 Annual Report, Washington, DC, 2022. By providing clear guidance on how institutions of higher education can share FSA data with their statewide longitudinal data systems (SLDSs) for research, evaluation, and program improvement purposes, federal leaders can ensure that states are connecting this information and providing individuals, the public, and policymakers with access to FSA data for decisionmaking. Unclear Guidance on Navigating Current Laws Has Deterred States from Including FSA Data in Their SLDSs The overlap among three federal laws—the Family Educational Rights and Privacy Act (FERPA), the Higher Education Act (HEA), and the Privacy Act—creates a lack of clarity about how these laws apply to linking data to SLDSs.1 In addition, potential penalties create an environment in which the vast majority of states andinstitutions won’t even attempt to link FSA data with their SLDS for research and evaluation purposes.2 Protecting student data is crucial and must be balanced with providing guidance on the full range of acceptable uses. 1 National Association of Student Financial Aid Administrators, Financial Aid Data Sharing (2019), [https://www. nasfaa.org/uploads/documents/](https://www. nasfaa.org/uploads/documents/)[ ](https://www. nasfaa.org/uploads/documents/)[J](June_2019_Data_Sharing_White_Paper.pdf.)[une_2019_Data_Sharing_White_Paper.pdf](June_2019_Data_Sharing_White_Paper.pdf.)[.](June_2019_Data_Sharing_White_Paper.pdf.) 2 Privacy Technical Assistance Center, US Department of Education, Guidance on the Use of Financial Aid Information for Program Evaluation and Research (2017), [https://studentprivacy.ed.gov/sites/default/files/resource_document/file/FSA_final.pdf](https://studentprivacy.ed.gov/sites/default/files/resource_document/file/FSA_final.pdf). Currently, states must navigate the following conflicting information: • HEA allows sharing of FSA data only “for the purpose of applying for, awarding, and administering Title IV funds, state aid, and institutional aid programs”without a student’s written consent.3 • FERPA’s Audit and Evaluation Exception allows an institution to share personally identifiable informat

FAQs

Why do federal and state leaders need to provide access to FSA data?

Access to FSA data helps decision-makers understand how financial aid and debt relate to college enrollment and completion, and supports better counseling and policy for equitable postsecondary pathways.

What main issue has deterred states from linking FSA data to SLDSs?

Unclear guidance created by overlapping federal laws (FERPA, the HEA, and the Privacy Act) makes it difficult to determine how the laws apply to linking data to SLDSs, increasing fear of penalties.

What guidance change does the document recommend from federal leaders?

It recommends updating privacy and financial aid guidance so institutions of higher education can share FSA data with an SLDS for research, evaluation, and program improvement—such as including SLDSs within the definition of “educational authority.”

Oct 15, 2026

Uploaded by Callum