The U.S. Department of the Treasury and the U.S. Department of Education have 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 previous 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 the nation's cumulative credit card debt or cumulative auto debt, according to the Treasury. ED was never intended to operate what would be the fifth-largest commercial bank in the United States, distributing over $100 billion each year in Federal student loans and grants, it added.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.