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Treasury Department begins taking over student loans as the Education Department gets dismantled
The Treasury Department will manage $180 billion in defaulted federal student loans, affecting 9.2 million borrowers, as part of a plan to shift loan oversight from Education.
- On Thursday, the U.S. Treasury Department will take over management and debt collection of about $180 billion in defaulted federal student loans, the first phase toward full responsibility.
- Trump administration officials argue the U.S. Education Department is 'ill-equipped' to manage the portfolio and cited fewer than half of borrowers making payments and almost a quarter in default.
- About 9.2 million Americans are in default and about 12 million behind on payments, but borrowers do not need to act and will keep the same loan servicer during the 17-page interagency agreement.
- The deal is likely to draw legal challenges over statutory authority, while borrowers in default face credit damage and U.S. government collection powers can withhold pay and benefits.
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Dailyfly - Lewis Clark Valley NewsEducation Department to transfer management of defaulted student loans to Treasury
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…
Treasury Department begins taking over federal student loans from Education Department
The U.S. Education Department is handing off a portion of its student loan portfolio to the Treasury Department, a first step toward shedding management of all student loans as Trump administration officials dismantle the federal education agency.
·Washington, United States
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Total News Sources62
Leaning Left19Leaning Right3Center33Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 35%
C 60%
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