Millions of student-loan accounts are being transferred to the Treasury — and the first phase is launching
The U.S. government has launched a new online portal to help defaulted student-loan borrowers manage their accounts as part of a broader transfer of these portfolios to the Treasury Department. This initiative aims to modernize the repayment process and replace outdated paper-based systems.
Why it matters
The shift represents a significant administrative change in how federal student debt is managed, potentially impacting millions of borrowers currently in default.
The transfer of federal student loans to the Treasury Department is launching its first phase. J. David Ake/Getty Images The Education and Treasury Departments are launching an online support center for defaulted student-loan borrowers. It's part of the Education Department's plan to transfer federal student-loan accounts to the Treasury. The new portal allows defaulted borrowers to make payments online, eliminating the need for paperwork. The Trump administration is moving forward with its transfer of federal student-loan accounts to the Treasury Department. The Treasury and Education Departments announced on Wednesday, first reported by Business Insider, that they are launching the "Defaulted Loans Support Center." The new online portal is intended to serve as a centralized hub for borrowers in default to return to good standing and access default resources. Previously, defaulted borrowers had to file printed paperwork to access rehabilitation and consolidation resources.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in