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Trump Administration Considers Moving Student Loans from Education Department to Treasury - ABI

The Trump administration is considering moving responsibility for overseeing more than $1 trillion in student debt from the Education Department to the Treasury Department, a switch that would radically change the system that helps 43 million students finance higher education, the New York Times reported today. The potential change surfaced in a scathing resignation memo sent late Tuesday night by James Runcie, the head of the Education Department’s federal student aid program. Runcie, an Obama-era holdover, was appointed in 2011 and reappointed in 2015. He cut short his term, which was slated to run until 2020, after clashing with the Trump administration and Betsy DeVos, the education secretary, over this proposal and other issues. A shift in handling federal student aid is being weighed as the Trump administration and DeVos consider overhauling the Department of Education. Trump’s proposed budget for 2018 slashes funding for the department by nearly 50 percent.

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