"Student Loan Shift: Education Department Hands Reins to Treasury Department In a significant move, the US Education Department has announced that it will be transferring operational responsibility for federal student loans to the Department of the Treasury. The change, which is set to take effect soon, marks a major shift in the management of the country's massive student loan portfolio, with the Treasury Department taking on the task of collecting payments and maintaining borrower accounts. The move is part of a broader effort to streamline government operations and improve services for millions of student loan borrowers. As the federal government grapples with the growing burden of student debt, the transition raises questions about how the shift will impact borrowers and the overall student loan system."
The Education Department announced that it will be transferring operational responsibility for federal student loans to the Department of Treasury.