NASFAA President Statement on Low Pell Grant Payment Error Rate

Contact: Haley Chitty
Director of Communications
(202) 785-6959  

Washington, DC -- Nov. 15, 2011 -- In response to the Obama administration's announcement that the rate of improper payments in the Pell Grant program fell to 2.7% in 2011, National Association of Student Financial Aid Administrator President Justin Draeger issued the following statement:

"The Obama administration's efforts to eliminate improper payments in the Pell Grant program, combined with the hard work of financial aid administrators on campuses across the country, has helped reduce the Pell Grant payment error rate to 2.7 percent in 2011 -- two percentage points below the government-wide payment error rate of 4.7 percent. The low payment error rate in the Pell Grant program demonstrates that financial aid administrators and the U.S. Department of Education are taking effective steps to eliminate fraud and abuse in the federal student aid programs. The Obama administration estimates that these efforts helped prevent $300 million in improper Pell Grant payments in 2011. At a time when Congress is looking to cut federal spending, it is more important than ever to ensure the taxpayer funds invested in the federal student aid programs are being efficiently used to help qualified, low-income students achieve their higher education goals."


The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at 2,800 colleges, universities, and career schools across the country. Each year, financial aid professionals help more than 16 million students receive funding for post secondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit