Federal student‑aid shakeup — Treasury to take on loans as Pell faces a decade‑long shortfall

The Education Department announced a plan to shift responsibility for defaulted federal student loans to the Treasury Department, placing collection and repayment duties with an agency that has direct access to IRS enforcement tools. The transfer covers loans in default initially and raises questions about borrower protections and data handling as the Treasury absorbs new enforcement responsibilities. Separately, a coalition of higher‑education groups urged Congress to close an estimated $104 billion Pell Grant shortfall over the next decade. Advocates warn the cumulative funding gap threatens grant purchasing power and access for low‑income students, while policymakers weigh tradeoffs amid broader federal budget debates.