Treasury is auto-enrolling 60 million children in Trump Accounts starting this week
Temporary regulations published Tuesday eliminate the opt-in requirement that had kept participation low, particularly among lower-income families
The Education and Treasury Departments have initiated the first phase of transferring federal student loans to the Treasury Department. An online support center for defaulted borrowers, known as the Defaulted Loans Support Center, has been launched to streamline the repayment process. Previously, defaulted borrowers had to complete paperwork to access rehabilitation and consolidation resources.
The new portal, which was beta-tested with 15,000 borrowers, allows them to make online payments, making it faster for them to re-enter repayment. The transfer of defaulted student-loan management to the Treasury is part of a multi-phase plan that eventually includes non-defaulted federal student loans. Education Secretary Linda McMahon stated that the Education Department was never meant to act as a major financial institution and that partnering with the Treasury improves the administration of federal student aid programs.
Lawmakers and former officials have raised concerns about the Treasury's ability to manage the $1.7 trillion student-loan portfolio. The new portal is intended to serve as a centralized hub for borrowers in default, providing a faster path to repayment and a more efficient system for both borrowers and taxpayers.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
