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For decades, the Federal Student Aid office has been under the Department of Education. Under President Trump, however, that may change.
From The Epoch Times. President Donald Trump on Thursday suggested there could be major changes coming to how the federal government operates the federal student loan portfolio.
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Trump told reporters in the White House that he is considering moving the Federal Student Aid office away from the Department of Education amid talk that he is looking to either downsize or abolish the education agency.
Federal student loans currently overseen by the Education Department’s Federal Student Aid office will “be brought into either Treasury or Small Business Administration or Commerce,” Trump told reporters in the Oval Office. …
“I don’t think the Education [Department] should be handling the loans,” Trump [said]. “That’s not their business.”
A website run by the Federal Student Aid office says that the department is responsible for managing outstanding student loan debts worth hundreds of billions of dollars in loans for millions of borrowers. It specifically oversees Direct Loans, Federal Family Education Loans, and Perkins Loans that have outstanding balances, according to the page.
If the Trump administration is successful in closing down the Education Department, it means that billions in federal money to colleges and schools and managing the federal student loan portfolio would have to be taken up by another department. …
However, according to the Congressional Budget Office (CBO), Congress established the Federal Student Aid office’s current, performance-based structure in 1998, meaning that if the administration wanted to move the office, it may require an act of Congress. The CBO report said that as of 2019, the office’s portfolio was higher than $1 trillion. …
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(Excerpt from The Epoch Times. Photo Credit: The White House)