Student loan collection will be managed by Treasury Department
CNBC • • nation
Key Points:
- The Trump administration announced that the U.S. Department of the Treasury will take over collecting on defaulted student loans, shifting responsibilities from the Department of Education, which currently manages the nearly $1.7 trillion federal student debt portfolio.
- The Treasury Department is viewed as better equipped for debt collection due to its existing offset program for enforcing other federal debts, and it will gradually provide operational support for current, non-defaulted loans as well.
- Only borrowers in default—those who have missed payments for at least 270 days—are immediately affected, with the Treasury tasked with collecting from about 9 million such borrowers, though existing loan servicers like Maximus are expected to remain involved.
- Borrowers’ rights and loan terms remain unchanged despite the
