DeVos proposes spinning off federal student loans from Education Department into independent agency – Politico
The Trump administration proposed Tuesday to break off the nearly $1.5 trillion federal student loan portfolio from the Education Department and have it instead be managed by a new independent federal agency.
Education Secretary Betsy DeVos pitched the proposal for federal student loans to be operated by “a stand-alone government corporation, run by a professional, expert and apolitical board of governors,” instead of by the department’s Office of Federal Student Aid.
“Congress never set up the U.S. Department of Education to be a bank, nor did it define the secretary of Education as the nation’s ‘top banker,’” DeVos told thousands of college financial aid professionals gathered here for the department’s annual conference. “But that’s effectively what Congress expects based on its policies.”