Student-Aid Program Begins New Era
Beginning this month, federal student aid programs will serve as
guinea pigs in an experiment to infuse business practices into the
administration of government services.
In its Higher Education Act bill, Congress designated the
first-ever “performance-based organization” (PBO) to improve the
delivery of federal aid. On Dec. 1, the Clinton administration selected
Greg Woods, a former software executive, to direct the program.
Under the law, the PBO chief has expertise in management and
information technology and reports directly to the U.S. education
secretary. The director and senior staff will receive pay largely by
attaining specific performance goals, and the PBO has the flexibility
to hire other staff without normal civil service constraints.
Woods’ job includes “responsibilities unlike any other position in
the federal government,” Education Secretary Richard Riley said.
Among other goals, Woods is expected to increase use of the
Internet and electronic applications in processing student aid
requests. His office also will work on efforts to reduce student loan
defaults.
Overall, his office is responsible for $46 billion in federal aid for 8 million students.
