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Govbase

Federal Student Assistance Partnership

March 19 – March 20, 2026

The Bottom Line

The Trump administration is moving the $1.7 trillion federal student loan program from the Education Department to the Treasury Department. This is the first step in a plan to shut down the Education Department and give states more control over schools. The change starts with the Treasury Department taking over the collection of loans that are already in default.

Key Statements

PPOLITICO

The Department of Education announces a three-phase plan to transfer the federal student loan portfolio to the Department of the Treasury, beginning with loans in default.

Provides the specific three-phase timeline and starting point for the loan transfer.

TThe Wall Street Journal

President Trump signs an executive order directing Education Secretary Linda McMahon to dismantle the Department of Education and return authority to the states.

Identifies the executive order and the broader goal of dissolving the Education Department.

12 Articles

What student-loan borrowers need to know about their accounts being moved to Treasury

Business InsiderCenter

Trump administration tasks Treasury Department with student loan collection. What borrowers need to know

CNBCCenter

Trump's push to abolish the Education Department reaches student loan portfolio

The HillCenter

US Treasury to collect student loan debt in Education Department dismantling

Washington ExaminerCenter Right

'Hard reset': Education department shrinks with handoff of student-loan management to Treasury

Washington TimesCenter Right

Treasury Department to take over some federal student loans, as Trump administration works to dismantle Education Department | CNN Politics

CNNCenter Left

Political Response

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Analysis generated by AI. Always verify with official sources.