US EditionTreasury Department begins taking over student loans as the Education Department gets dismantled
The Treasury will manage about $180 billion in defaulted federal student loans, representing 11% of the $1.7 trillion portfolio, under a phased transfer from the Education Department.
- Under a Thursday interagency agreement, the U.S. Treasury Department will take over collecting on defaulted federal student loan debt in the first phase of a three-phase plan.
- Last year, President Donald Trump signed an executive order to begin dismantling the U.S. Department of Education, and administration officials are relocating its operations via interagency agreements.
- About 9.2 million Americans are in default on student loans, with defaulted loans totaling about $180 billion of the nearly $1.7 trillion federal student loan portfolio.
- As collections resume, officials note that federal student loan borrowers do not need to do anything and will keep the same loan servicer, though collections paused since January raise near-term stakes.
- Critics warned that later phases could see Treasury assume responsibility over non-defaulted loans and FAFSA, as Rachel Gittleman said, 'The Trump Administration continues to unlawfully dismantle the Education Department by moving programs and offices to other federal agencies despite clear warning from Congress that Education Secretary Linda McMahon lacks the authority to do so.
163 Articles
163 Articles
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Student loans are headed to the Treasury Department. Here's what to know if you have student debt
The Treasury Department will take over the management of student loans whose borrowers are in default. Here's what borrowers should know.
US Education Department transfers student loan management to Treasury Dept — Here's what changes for borrowers
The US Education Department has transferred student loans to the Treasury Department, marking a significant step toward the Trump administration's dismantling of the agency. Here's what changes for the borrowers:
US Treasury to Partner With Education Department to Collect Student Loan Debt
The U.S. Department of the Treasury and the Department of Education (ED) jointly announced a new partnership under which the Treasury will assume responsibility for collecting on defaulted federal student loan debt, according to a March 19 joint statement from the departments. The Federal Student Assistance Partnership will enhance the administration of student aid programs, mitigate any fallout and cost to taxpayers from mismanagement of the fe…
Education Department to transfer management of defaulted student loans to Treasury • Oklahoma Voice
The U.S. Department of Education on Feb. 20, 2026. (Photo by Shauneen Miranda/States Newsroom)WASHINGTON — The U.S. Treasury Department will take over the Department of Education’s responsibility for collecting on defaulted federal student loan debt, President Donald Trump’s administration announced Thursday. It’s the first step in a multi-phase process that will end with Treasury taking on the entire federal student loan portfolio. It’s also th…
Federal student loans will move to Treasury, further shrinking Education Department
The Trump administration announced Thursday a three-phase transition that will move significant management of and responsibility for the nation’s federal student loan portfolio from the U.S. Education Department to the U.S. Treasury Department.The administration says the Treasury Department is better equipped to, among other things, help millions of borrowers who are in default return to repayment on their loans, though the move is also politica…
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