A major shift in the federal government is underway.
Education Secretary Linda McMahon announced on Thursday a historic partnership to offload the Department of Education’s nearly $1.7 trillion student loan portfolio to the Treasury Department. The move presents more responsibilities to Treasury Secretary Scott Bessent, whose agency will be responsible for student loan debt collection.
The Treasury Department has a key power to collect the debt as its agency includes the Internal Revenue Service. The IRS wields the power to garnish up to 15% of a delinquent borrower’s paycheck.
