Transfer of Department of Education functions relating to Federal student aid

(a) In general There are transferred, in accordance with the applicable effective dates in subsection (b), to the Department of the Treasury— (1) functions of the Secretary of Education (including the performance-based organization established pursuant to section 141 of the Higher Education Act of 1965 (20 U.S.C. 1018) and all related functions of any officer or employee of the Department of Education) related to the servicing and voluntary and involuntary collections of defaulted Federal student loan debt, including certification of debt, due process, borrower notification, disputes, bankruptcy, rehabilitation, consolidation, compromise, repayment agreements, and credit reporting; (2) functions of the Secretary of Education (including the performance-based organization established pursuant to section 141 of the Higher Education Act of 1965 (20 U.S.C. 1018) and all related functions of any officer or employee of the Department of Education) related to the servicing of non-defaulted Federal student loan debt, including borrower notification, processing of payments, repayment plan administration, consolidation, disputes, and credit reporting; and (3) all functions of the Secretary of Education (including the performance-based organization established pursuant to section 141 of the Higher Education Act of 1965 (20 U.S.C. 1018) and all related functions of any officer or employee of the Department of Education) that remain after the transfer of functions required under paragraphs (1) and (2) with respect to each of the following: (A) Administrative Provisions for Delivery of Student Financial Assistance under part D of title I of the Higher Education Act of 1965 (20 U.S.C. 1018 et seq.). (B) Lender and Institution Requirements Relating to Education Loans under part E of such title (20 U.S.C. 1019 et seq.). (C) Federal Pell Grants under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.). (D) Federal Supplemental Educational Opportunity Grants under subpart 3 of such part A (20 U.S.C. 1070b et seq.). (E) Federal Family Education Loan program under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.). (F) Federal Work-study programs under part C of such title (20 U.S.C. 1087–51 et seq.). (G) William D. Ford Federal Direct Loan program under part D of such title (20 U.S.C. 1087a et seq.). (H) Federal Perkins Loans under part E of such title (20 U.S.C. 1087aa et seq.). (I) Need Analysis under part F of such title (20 U.S.C. 1087kk et seq.). (J) General Provisions Relating to Student Assistance programs under part G of such title (20 U.S.C. 1088 et seq.). (K) Eligibility and Certification Procedures under subpart 3 of part H of such title (20 U.S.C. 1099c et seq.). (L) Health Education Assistance Loan program as provided in part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.). (b) Effective dates (1) Effective dates determined The Secretary of Education and the Secretary of the Treasury shall jointly determine effective dates for the transfers required under subsection (a), in accordance with paragraph (2) of this subsection. (2) Applicable effective dates The transfers required under subsection (a) shall take effect as follows: (A) Paragraph (1) With respect to the transfers required under paragraph (1) of subsection (a), on the effective date determined in accordance with paragraph (1) that is on or after the date of enactment of this Act. (B) Paragraph (2) With respect to the transfers required under paragraph (2) of subsection (a), on the effective date determined in accordance with paragraph (1) that is on or after the effective date described in subparagraph (A). (C) Paragraph (3) With respect to the transfers required under paragraph (3) of subsection (a), on the effective date determined in accordance with paragraph (1) that is on or after the effective date described in subparagraph (B).