Which U.S. government department manages federal student loans? The American Federation of Teachers (AFT) is suing the Department of Education for halting income-driven repayment (IDR) plans after a court blocked the Biden administration’s SAVE plan, affecting over 12 million borrowers. Meanwhile, the DOE announced layoffs of 1,300 employees as the Trump administration considers shifting student loan management to other agencies, raising concerns about disruptions in financial aid and loan services.