Student loans to go to Treasury Department
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Trump officials plan to task the Treasury Department with collecting on defaulted student loans and eventually "operational support" on current loans.
In an ominous sign for student loan borrowers, the Education Department published new data indicating that backlogs for repayment plans and loan forgiveness are ongoing.
Trump's cap on student-loan borrowing for advanced degrees has prompted colleges to create new lending programs to fill financing gaps.
The Treasury Department will take over the collection of defaulted federal student loan debt, and will support efforts to bring borrowers back into repayment.
After a long court battle, the SAVE plan is officially kaput. Launched in 2023, the Biden administration’s Saving on a Valuable Education (SAVE) federal student loan repayment plan was created to replace the outgoing REPAYE program–and help keep Biden’s campaign promise to forgive student loans.
It's been a confusing time for people with student loans. Collections restarted, then were put on hold. At the same time, borrowers had to stay on top of changes to key forgiveness plans. President Donald Trump’s “Big Beautiful Bill” introduced new borrowing limits for graduates and raised challenges to the Public Service Loan Forgiveness program.
Federal appeals court officially ends Biden's SAVE student loan plan, reportedly impacting 7 million borrowers who must now seek alternative repayment options.
More than half a million federal student loan borrowers remain in a backlog of applications for an affordable repayment plan, a court filing revealed.
If you collect Social Security and you are behind on a federal student loan, the past year has been a slow-motion policy watch. As of March 2026: garnishment is still paused, but the clock is ticking toward a resumption date tied to a new repayment plan launching this summer.