H.R. 9609 — Less Bureaucracy, Better Student Aid Act

This section transfers to the Department of the Treasury all functions of the Department of Education related to servicing and collecting defaulted Federal student loans, servicing non-defaulted Federal student loans, and all remaining functions for Federal student aid programs including Pell Grants, Direct Loans, Perkins Loans, FFEL, work-study, and need analysis. The transfers occur in three sequential phases on effective dates jointly determined by the Secretaries of Education and Treasury.

This section authorizes the Secretary of the Treasury to exercise all authorities under other provisions of law that were available to the Secretary of Education for performing functions transferred under this Act.

This section transfers to the Secretary of the Treasury all personnel, assets, liabilities, contracts, property, records, and unexpended balances of appropriations connected to functions transferred under the Act. Unexpended funds must be used only for their originally authorized purposes.

This section directs the Director of the Office of Management and Budget to ensure no net increase in full-time equivalent employees at Federal agencies impacted by the Act, measured from the date of enactment. It authorizes the Director to determine transferred functions and make incidental dispositions of personnel, assets, liabilities, contracts, property, and unexpended balances. It requires the Director to terminate affairs of all entities ended by the Act and to certify compliance to the House Committee on Education and Workforce and the Senate Committee on Health, Education, Labor, and Pensions on each effective date.

This section authorizes the Secretary of the Treasury to delegate transferred functions to designated officers and employees of the Department of the Treasury and to permit successive redelegations. It provides that no delegation relieves the Secretary of responsibility for administering the function.

This section deems references to the Secretary of Education and the Department of Education in any other federal law, executive order, rule, regulation, delegation of authority, or related document to refer instead to the Secretary of the Treasury and the Department of the Treasury for functions transferred under section 2.

This section preserves the validity of all orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges issued before the transfer of functions from the Department of Education. It continues pending proceedings, suits, and applications without interruption or abatement, substitutes the Secretary of the Treasury or other Treasury officials as parties where necessary, and applies existing administrative and judicial review requirements to the transferred functions.

This section terminates the exemption for delinquent or defaulted federal student loan debt from the debt collection requirements of 31 U.S.C. 3711(g). It applies to loans under parts B, D, or E of title IV of the Higher Education Act and Health Education Assistance Loans held by the Secretary of Education, effective on the date of transfers required under section 2(a).

This section authorizes the Secretary of the Treasury to use Department of Education personnel, assets, and appropriated funds for a reasonable period to facilitate the orderly implementation of the Act.