Story perspectives

Trump Administration Shifts Student Loans to Treasury, Sparks Criticism

3/21/2026

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Summary

Story summary

The Trump administration announced a transition of federal student loan management from the Department of Education to the Treasury Department to address a $1.7 trillion portfolio and the fact that nearly a quarter of borrowers are in default.
Education Secretary Linda McMahon said Treasury's expertise will improve loan servicing.
Senator Patty Murray criticized the move as undermining borrower support, increasing bureaucracy, and raising concerns about oversight.

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Story summary

The Trump administration announced a transition of federal student loan management from the Department of Education to the Treasury Department to address a $1.7 trillion portfolio and the fact that nearly a quarter of borrowers are in default.
Education Secretary Linda McMahon said Treasury's expertise will improve loan servicing.
Senator Patty Murray criticized the move as undermining borrower support, increasing bureaucracy, and raising concerns about oversight.