U.S. Department of the Treasury and U.S. Department of Education Announce Historic Federal Student Assistance Partnership

Marks major step to return education to the States and break up the Federal education bureaucracyThe U.S. Department of the Treasury (Treasury) and the U.S. Department of Education (ED) today announced the Federal Student Assistance Partnership to enhance the administration of Federal student aid programs, mitigate the continuing fallout and cost to taxpayers from the Biden Administration’s mismanagement of the Federal student loan portfolio, and facilitate the return of defaulted borrowers to repayment.Currently, ED’s student loan portfolio stands at nearly $1.7 trillion with fewer than 40 percent of borrowers in repayment and almost 25 percent of borrowers in default. Student loan debt is roughly twice the size of all American university endowments combined and is larger than either our nation’s cumulative credit card debt or cumulative auto debt.