The federal government signaled a major restructuring of student‑debt administration: Education Secretary Linda McMahon announced a plan to shift responsibility for the nearly $1.7 trillion federal student loan portfolio to the Treasury Department, beginning with loans in default. Treasury’s access to tax data and garnishment tools is cited as a rationale for increasing collection effectiveness. Separately, more than sixty higher‑education and advocacy groups urged Congress to fund a roughly $104 billion shortfall in the Pell Grant program over the next decade, warning that without action institutional affordability and access will suffer. The coordinated advocacy signals bipartisan pressure to shore up grant funding ahead of appropriations negotiations. Colleges and financial‑aid officers must prepare for changes in repayment enforcement, borrower outreach and potential shifts in default management. Campus leaders and association counsel will be watching guidance on interagency data sharing, borrower protections and obligations tied to federal student‑aid compliance.