WASHINGTON − In a move that could have major implications for millions of Americans who rely on financial aid to afford school, the Trump administration is attempting to gradually shift government supervision of federal student loan debt to the Treasury Department from the Education Department.
The agencies inked a new agreement on March 19 − the 10th such contract in President Donald Trump and Education Secretary Linda McMahon's bid to break up a department that provides support that students and schools rely on across the country.
The news immediately prompted praise from conservatives and questions among advocates for student loan borrowers and college financial aid officers, some of whom worried about the short- and long-term impacts of the seismic change in federal financial aid policy.
Read more: Trump shrunk the office overseeing financial aid and student loans. These charts show how.
At first, the transfer of "operational responsibility" will only apply to the debt of the more than 9 million Americans who've defaulted on their student loans. But in subsequent phases, it will also include shifting more responsibility to manage all of the government's nearly $2 trillion in federal student debt to the Treasury Department. That includes at least some aspects of managing the Free Application for Federal Student Aid, or FAFSA form, which is used by millions of students every year to go to college.
