The U.S. Treasury now manages $180B in defaulted student loans, shifting control from the Department of Education.

The U.S. The Treasury Department has begun managing $180 billion in defaulted federal student loans, a major shift in student loan administration under the Trump administration. The move, part of an effort to restructure or dismantle the Department of Education, transfers collection responsibilities to Treasury while borrowers continue working with the same servicers. No timeline has been set for expanding the role to non-defaulted loans. Critics warn the change may violate federal law, create confusion, and harm borrowers due to the Treasury's past lower collection success. Legal challenges are expected, and the long-term future of student loan oversight remains uncertain amid ongoing government restructuring.