The U.S. Office of Federal Student Aid (FSA) began relocating staff into Department of the Treasury space on Washington’s K Street as part of a broader administration plan to reduce layers of federal education bureaucracy. The move is scheduled to start this week, with full occupancy expected Aug. 17 and another wave arriving Sept. 8. Federal officials said the consolidation is intended to keep services running smoothly while tightening coordination with Treasury partners, including around federal student loan oversight. Aid processing and borrower support work coincides with the start of the new academic year, raising operational pressure on schools’ financial aid offices. The relocation comes shortly after an interagency agreement moved oversight of defaulted student loans to Treasury—marking a continued shift in how student-aid enforcement and administration are organized across agencies.