• World News
  • Politics
  • Stock
  • Investing
  • Editor’s Pick
Time And Sales Reporter
Editor's PickInvesting

If Student Loans Are Removed From the Department of Education, Where Should They Go?

by April 1, 2025
April 1, 2025

Andrew Gillen

Student Loan Application 16x9

As momentum for closing the US Department of Education gains steam, questions about the transition are starting to surface, with the biggest ones concerning student loans. While we have argued for the privatization of student loans (full report or blog summary), which would eliminate the need for a new home for student loans, most of the current discussion revolves around keeping the existing loan programs but moving them to another department or agency, with the Department of the Treasury and the Small Business Administration (SBA) being the most discussed new homes. Treasury is the better choice for three reasons.

First, just under 40 percent of students are repaying through an income-driven repayment (IDR) plan, which requires information on income, information that the Treasury already has but SBA does not. Under IDR plans, payments are a set percentage of income (typically 10 percent) each month. With monthly payments varying, the length of the loan varies too, with high earners repaying their loans more quickly. Since the Treasury already collects income information (through the Internal Revenue Service) needed for IDR, it is better positioned to manage IDR plans than the SBA.

Second, the Treasury already has systems set up and running to deal with troublesome loans. For example, the Treasury Offset Program is used to collect unpaid taxes and student loans from borrowers who default by garnishing their tax refunds and other government payments. The SBA would have to set up its own system or outsource the task to Treasury.

Third, SBA’s experience facilitating loans is irrelevant for student loans. One of the main things the SBA does is provide loan guarantees to private lenders, which means it has considerable experience evaluating the quality of loans (often called underwriting). But student loans do not go through underwriting as eligibility and loan terms are all set by Congress, which renders SBA’s greater experience in underwriting irrelevant. Relatedly, SBA’s experience with loan guarantees is likewise irrelevant, because student loans should not have loan guarantees.

Overall, if student loans are moved, the Department of the Treasury would be a better choice than the Small Business Administration. 

previous post
Trump allies scrutinize Judge Boasberg’s DC connections as high-stakes legal battles escalate
next post
Trump agenda upended after GOP rebellion shuts down House floor

Related Posts

Successful Due Diligence Ends – $20M Placement To...

August 25, 2025

Drilling Commences at Mt Hope Project

August 25, 2025

Crop tour projects record 2025 U.S. corn harvest,...

August 24, 2025

Top 5 Canadian Mining Stocks This Week: StrategX...

August 24, 2025

Tech 5: Softbank to Invest US$2 Billion in...

August 24, 2025

Cracker Barrel shares plummet after pushback on new...

August 23, 2025







    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.




    Recent Posts

    • Russia looks to update nuclear program amid ‘colossal threats’ from West

      August 25, 2025
    • Trump gave the Oval Office a gilded makeover – and covered the cost himself

      August 25, 2025
    • Trump learns a lesson grounded in faith, how best to stand tough on trade with China

      August 25, 2025
    • Russia says Ukrainian drones hit nuclear power plant during Independence Day strikes

      August 25, 2025
    • Trump tells Grassley to tell Democrats ‘go to HELL’ over blocked judicial nominees in Senate

      August 25, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 timeandsalesreporter.com | All Rights Reserved

    Time And Sales Reporter
    • World News
    • Politics
    • Stock
    • Investing
    • Editor’s Pick

    Read alsox

    Apple sued by shareholders who allege it overstated...

    June 24, 2025

    Recall warns some Celsius energy drink cans accidentally...

    July 31, 2025

    7 Biggest Lithium-mining Companies in 2025

    April 25, 2025