The Trump administration is attempting to gradually shift government supervision of federal student loan debt to the U.S. Treasury Department from the U.S. Department of Education (USDE).
On March 19, 2026, the agencies signed an agreement to that effect. It is the 10th such contract in President Donald Trump and Education Secretary Linda McMahon‘s effort to break up the USDE, which provides support that students and schools rely on nation wide.
Initially, the transfer of “operational responsibility” will only apply to the debt of the more than 9 million Americans who’ve defaulted on their student loans. However, in subsequent phases, it will also include shifting more responsibility to manage all of the government’s nearly $2 trillion in federal student debt to the U.S. Treasury Department. That includes at least some aspects of managing the Free Application for Federal Student Aid (FAFSA) form, which is used by millions of students every year to attend postsecondary schooling.
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