Student Loans To Get Taken Over By Treasury From Edudation Department As Trump Dismantles The Latter
By Tomas Kassahun
Published on March 22, 2026.
The U.S. Department of the Treasury is set to take over some student loan cases while President Donald Trump is dismantling the Department of Education. The Treasury Department will initially manage some student loans, but is expected to eventually take over all default loans. This is a significant change for the Education Department, which has been managing student loan programs since the late 1970s. Critics argue that the move will cause confusion for borrowers and could lead to mistakes that could result in significant consequences for them. The move is seen as part of a strategy to break up the Federal education bureaucracy and improve the administration of Federal student aid programs.
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