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

What happened

The Department of Education announced it will transfer its $1.7 trillion student loan portfolio to the Treasury Department, marking the biggest step yet toward the agency's elimination. This follows President Trump's executive order from last year calling for the Education Department to be shuttered. The move affects millions of Americans with federal student loans.

Why people care

The Education Department oversees federal student aid for over 40 million borrowers, making this transfer one of the largest government restructuring efforts in recent history. Student loan servicing, forgiveness programs, and borrower protections could all be significantly impacted by moving operations to a different agency.

The takes

Supporters say

Eliminating the Education Department will reduce government bloat and return education decisions to states and local communities where they belong. Moving student loans to Treasury streamlines operations and removes an unnecessary layer of federal bureaucracy that has failed to improve educational outcomes.

Critics say

Dismantling the Education Department threatens vital protections for students with disabilities, low-income families, and borrowers struggling with loan repayment. The Treasury Department lacks the specialized expertise needed to handle complex educational programs and student services that millions depend on.

Sources