Department of Treasury Begins Oversight of Key Federal Student AID Programs
Published March 23, 2026
By AACOM Government Relations
Advocacy Federal Policy
- On March 19, 2026, the Department of Education (ED) formally entered into an agreement with the Department of Treasury (Treasury) to shift key operational responsibilities for the $1.7 trillion federal student aid portfolio.
- The initial phase transfers responsibility for collecting defaulted federal student loans and managing the Default Resolution Group to the Treasury.
- All student aid systems will remain in place, and while not providing further timelines, it is expected that ED will look to transfer other responsibilities as permitted by law to advance the administration's goal of dissolving ED.