Education Dept hands federal student loan portfolio to Treasury, in latest step to dismantle agency
Federal News Network • • nation
Key Points:
- The Education Department is transferring its federal student aid programs, including the management of nearly $1.7 trillion in student loan debt, to the Treasury Department under interagency agreements signed last fall.
- Treasury will take over collection of defaulted student loans and eventually administer the Free Application for Federal Student Aid (FAFSA), with no additional action required from borrowers.
- Education Secretary Linda McMahon criticized the department's management of student aid programs and expressed confidence that Treasury’s expertise will improve operations after decades of mismanagement.
- Critics, including former Education Department employees and unions, argue that dismantling the department and shifting programs to other agencies has caused confusion, increased costs, and disrupted funding flow.
- Despite the Trump administration's efforts
