Student loan portfolio moving to Treasury
The federal student loan portfolio will undergo a three-phase process to migrate its management from the U.S. Department of Education to the U.S. Department of the Treasury.
The Trump administration stated the move aims to leverage the financial and economic expertise of the Treasury Department to help more than 9 million student loan borrowers in default access repayment programs, according to a news article from NPR. It is the latest sign of the administration’s efforts to dismantle the Education Department.
The three phases of the plan involve the Treasury Department’s establishment of control over the collection of defaulted loans, expansion of student loan management to nondefaulted loans and assumption of the administration of the Free Application for Federal Student Aid.
Despite the changes, the Treasury Department will be unable to assume all of the statutory student loan obligations typically handled by the Education Department. Officials emphasized that the move will not impact student loan borrowers.
Read more: NPR
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