Treasury Department to manage federal student loan debt
Treasury will now collect defaulted student loan debt as the administration works to dismantle the Education Department. The portfolio totals $1.7 trillion.
The administration of President Donald Trump has officially begun the process of transferring federal student loan management from the Department of Education to the Department of the Treasury. This move is part of a broader strategic initiative to dismantle the Education Department, fulfilling a campaign promise to reduce federal involvement in education and return authority to the United States individual states.
On Thursday, officials from both departments announced an interagency agreement that allows the Treasury Department to take over the collection of defaulted federal student loan debt. This shift follows earlier announcements of partnerships with the Departments of Labor, State, Interior, and Health and Human Services to redistribute various responsibilities previously held by the Education Department.
