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The Treasury Department will take over the management of federal student loans whose borrowers are in default under a new agreement announced Thursday, the U.S. government said. The agreement marks what officials described as a major shift from the Education Department, which has overseen federal student loan programs for more than 40 years.

According to the agreement, the Education Department will hand off the management of defaulted student loans to Treasury. It is the next step in President Donald Trump’s plans to dismantle the federal education agency, the agreement said, while noting that only Congress has the authority to close the department.

The agreement outlines the change as a two-phase process. In the first phase, Treasury is to take responsibility for management of student loan defaults, where borrowers are “months behind on payments.” In a second phase, the agreement says Treasury will “assume operational responsibility” over non-defaulted loans “to the extent practicable,” without providing a timeframe.

Education Department data released this month shows about 9.2 million Americans are in default on student loans. The agreement says defaulted loans amount to about $180 billion, representing 11% of the government’s $1.7 trillion student loan portfolio.

Officials said borrowers do not need to take any action as the change moves through. The administration said borrowers will continue to work with the same loan servicer and repay their loans the same way, and it directed borrowers to myeddebt.ed.gov for an overview of their defaulted federal student loans.

The agreement also addresses what borrowers should expect regarding collections. It said involuntary collections on federal student loans remain on hold, and it referenced a February announcement that delayed plans to withhold pay from student loan borrowers who default. The agreement said federal student loan borrowers can still have wages garnished and federal tax refunds withheld if they default.

For borrowers already in default, officials said they can contact their loan holder to apply for a loan rehabilitation program.