H.R. 9609 · In committee · Education

Less Bureaucracy, Better Student Aid Act

What it does

Transfers all federal student loan servicing, collection, and debt management functions from the Department of Education to the Department of the Treasury.
Transfers federal student aid eligibility and certification functions, including Pell Grants, Direct Loans, Work-Study, and Perkins Loans, from the Department of Education to the Department of the Treasury.
Directs the Secretaries of Education and Treasury to jointly determine effective dates for the transfers, with defaulted-loan functions transferring first, followed by non-defaulted loan servicing, then remaining aid programs.
Requires the Office of Management and Budget to ensure the transfers do not increase the total number of full-time equivalent federal employees and to certify compliance on each effective date.

Jul 15, 2026: Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.

Committee: House Education and Workforce