11. Department of Education · Notable · Needs Congress
Assign federal student loans to the Treasury Department
Printed page 330 11. Department of Education
“Federal loans would be assigned directly to the Treasury Department, which would manage collections and defaults.”
What has happened
- Attempted
ED and Treasury announced the Federal Student Assistance Partnership, an interagency agreement under which "Treasury will assume operational responsibility for collecting on defaulted Federal student loan debt and provide operational support to ED's efforts to return borrowers to repayment", with later phases to cover non-defaulted debt "to the extent practicable and permitted by law". Collections and defaults are exactly what the Quote sends to Treasury - but the loans themselves are not assigned to Treasury: the $1.7 trillion portfolio, the Direct Loan statute and Federal Student Aid all stay at ED, and Treasury is a service provider.
Research log
What was searched, and what didn’t count as evidence
Research notes
- This is the same instrument that carries #824 (spin Federal Student Aid off into a government corporation) and it is leveled the same way: an interagency agreement that leaves the statute intact is attempted, not partial.
- Executive Order 14242 supplies the policy - “the Department of Education is not a bank, and it must return bank functions to an entity equipped to serve America’s students” - and is cited on #803 and #824.
- The half of this ask that needs an act of Congress rests on one negative search, run once for the program transfers and eliminations on pp. 325–327.
- Action
- transfer
- Object
- Federal student loan collections and defaults
- ID
- 826