Bill would shift student loan programs from Education to Treasury
In markupH.R. 9609Latest action
Sponsor: Tim Walberg · Representative · MI
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Official title: Less Bureaucracy, Better Student Aid Act
119th Congress
Topics: Education
Introduced:
Read the official bill on Congress.govIn plain words
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The bill would transfer federal student loan and financial aid programs from the Department of Education to Treasury in stages.
45-second read · 4 questions answered below
What does this do?
This bill moves nearly all federal student loan and financial aid programs, including Pell Grants, work-study, the Direct Loan program, and loan servicing/collections, from the Department of Education to the Department of the Treasury. The transfer happens in stages: defaulted loan collection first, then regular loan servicing, then remaining programs. It also removes a special exemption that currently treats defaulted student loan debt differently from other government debts under federal debt collection law.
Who does it affect?
Anyone with federal student loans or who receives federal financial aid for college, along with staff at the Department of Education and Treasury.
Why does it matter?
Shifting these programs to Treasury and removing the debt-collection exemption could change how defaulted loans are pursued, though the bill does not alter loan terms, interest rates, or forgiveness rules directly.
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Where does it stand?
- IntroducedJul 9, 2026
- House committeeYou are here · Jul 15, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.