- The Treasury Department will initially take over management of approximately 180 billion dollars in defaulted student loans representing 11 percent of the total portfolio
- Education Secretary Linda McMahon described the move as a historic step toward breaking up the federal education bureaucracy and improving aid administration
- Treasury Secretary Scott Bessent stated that his department will bring long overdue financial discipline and better stewardship of taxpayer dollars to the program
- The partnership serves as a strategic workaround to shift agency functions while the administration seeks formal congressional approval to abolish the Education Department
- Officials confirmed that the Treasury will eventually assume operational responsibility for the entire 1.7 trillion dollar portfolio and the FAFSA program
Education Secretary Linda McMahon transfers student loan management to Treasury Department
Mar 20, 2026, 2:16:13 PM UTC(6 hours ago)
Impact: Medium
Affected Assets
Sources
From:@YahooFinance
US Education Secretary Linda McMahon has just launched a historic partnership to begin shifting the Department of Education's $1.7 trillion student loan portfolio to the Treasury Department. https://t.co/CDIlxW4PmP
