Summary
The Trump administration is shifting control of the federal student loan system from the Department of Education to the Department of the Treasury. This change will involve the Treasury handling defaulted loan collections and eventually managing the entire student loan system.
Key Facts
- The U.S. student loan portfolio is valued at $1.7 trillion.
- Management will transfer from the Department of Education to the Department of the Treasury.
- Treasury will collect payments from students who default on loans.
- Eventually, Treasury will oversee the entire loan system.
- The Education Department’s Federal Student Aid office functions will also move to Treasury.
- The transition will be gradual to prevent any disruptions.
