Education Secretary Linda McMahon announced a plan to shift responsibility for the roughly $1.7 trillion federal student loan portfolio to the Treasury Department, starting with loans in default. Officials argue Treasury’s enforcement tools, including IRS garnishment powers, will increase collections on delinquent borrowers. Advocacy groups and higher‑education coalitions pressed Congress to plug a projected $104 billion Pell Grant shortfall over the coming decade. Dozens of organizations urged lawmakers to fund Pell fully to avoid cuts to grant size or eligibility. The twin developments—administrative transfer of loan servicing and a looming Pell funding gap—could tighten financial flows for institutions and alter borrower outcomes.