India, June 16 -- Newly released court documents reveal the Trump administration tried to move control of the country's $1.6 trillion federal student loan program from the Department of Education to the Treasury Department.

The plan, which was being quietly developed, would have shifted responsibility for managing and collecting student loans-a job traditionally handled by the Education Department's Federal Student Aid (FSA) office. That effort was paused after a federal judge blocked broader attempts to restructure the Education Department.

The federal student loan system affects over 42 million Americans. Moving oversight to another agency could change how payments are collected, how borrowers are protected, and how the system is regu...