Summary
The U.S. Education Department has started transferring management of certain federal student loans to the Treasury Department. Initially, the Treasury will manage loans in default, with plans to eventually oversee all student loans. Borrowers are not required to make any changes during this transition.
Key Facts
- The U.S. Education Department is transferring some student loans to the Treasury Department.
- The change involves loans in default, totaling about $180 billion.
- These defaulted loans make up 11% of the total $1.7 trillion student loan portfolio.
- The Treasury Department may eventually manage all federal student loans.
- Borrowers will continue using the same loan servicers and repayment methods.
- The agreement signifies a significant shift in how federal student loans are managed.
- The Education Department has been overseeing student loans for over 40 years.
