A new student loan servicing-and-collection program is expected to target hundreds of thousands of borrowers in July, according to reporting that links the move to a Trump administration effort to break up the Education Department. The first step would funnel about 500,000 borrowers into the program, largely run by the Treasury Department, and would begin with borrowers far behind on federal debt. While a Treasury spokesperson disputed the specific figure, the plan’s timeline suggests a near-term escalation in collection activity for those in default. For institutions, the servicing shift is a direct compliance and enrollment-risk factor, particularly for students at the margin of aid eligibility. The operational changes also affect how universities counsel students on repayment, consequences of default, and mitigation steps as servicing responsibility moves across agencies.