# US Treasury to take over defaulted student loans from Education 2026-08-09T15:42:18+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet The US Treasury released new plans on Friday to manage defaulted federal student loans, taking over from the Education Department. It will create a 'Default Resolution Hub' and work with outside vendors to collect debt and guide borrowers. About 10 million borrowers in default are in the first phase. Default consequences include wage garnishment and seizure of Social Security benefits, though involuntary collection has been paused since January without a restart date. The transfer is part of the Trump administration's push to dismantle the Education Department. Hindustan Times reports that a 2015 pilot under the Obama administration when Treasury managed defaulted accounts collected money at lower rates than private agencies, raising questions about readiness. The federal student-loan portfolio is worth about $1.7 trillion. ## Coverage - hindustantimes.com Tags: debt collection, education department, loan default, Treasury, Trump administration, US student loans Canonical: https://indianopinion.org/us-treasury-to-take-over-defaulted-student-loans-from-education/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/us-treasury-to-take-over-defaulted-student-loans-from-education/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.