The U.S. Department of Education has published a Federal Register notice requesting public comment on a proposed information collection titled “Required Information for Annual Improper Payment Estimation.” The notice was released by Federal Student Aid on March 16, 2026.
Federal Student Aid (FSA) administers the Department of Education’s Federal student financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended. Under these programs, institutions of higher education act as a fiduciary in receiving grant and loan funds from the Department for the sole purpose of allowing students to pay the costs of attendance at the institution. The Department executes a two-stage Sampling and Estimation Methodology Plan (S&EMP) that is based in part on the results of compliance audits to estimate its improper payments and unknown payments in accordance with the Public Law 116-117, Payment Integrity Information Act of 2019 (PIIA) and OMB Circular A-123, Appendix C (A-123C). The Department requires sample, population, and as applicable, finding information regarding testing performed by the auditors, however, this is not reported with the compliance audit. This information is necessary to execute FSA’s S&EMP.
The legal and administrative requirements that necessitate the collection of this information are the audit access provisions in 2 CFR 200.517(b) and Title IV regulations at 34 CFR 668.23(e)(1)(ii), which the Department has concluded gives it the authority to collect certain information from the single audit in order for the Department to carry out its oversight responsibilities with regard to improper payments and unknown payments. PIIA section 3352 (31 U.S.C. 3352) requires federal agencies to review all programs and activities they administer that may be susceptible to significant improper payments and publish the payment integrity information annually.
This is a request for a new information collection to develop a form for institutions of higher education to have a mechanism to report to the Department information required to carry out the S&EMP and publish payment integrity information on an annual basis.
Interested persons are invited to submit comments on or before April 15, 2026.
To view this Federal Register publication, click here.
SOURCE: Comment Request: Required Information for Annual Improper Payment Estimation