The Trump administration continued its efforts to dismantle the U.S. Education Department by announcing an agreement on March 19 to transfer most of the responsibilities of managing the federal student loan portfolio to the U.S. Treasury Department. The interagency agreement follows nine others that have moved the Education Department’s work to other agencies.

The three-phase process outlined in the agreement will start with the Treasury resuming control of collecting on defaulted student loans. The subsequent phases will have the Treasury “provide operational support” to non-defaulted debts and eventually administer the Free Application for Federal Student Aid (FAFSA).

“The Trump administration continues to unlawfully dismantle the Education Department by moving programs and offices to other federal agencies despite clear warning from Congress that Education Secretary Linda McMahon lacks the authority to do so,” said Rachel Gittleman, president of AFGE Local 252, the union representing more than 2,000 current and former U.S. Department of Education employees. 

According to a senior Education Department official, 11.6 million individuals are in default or late-stage delinquency on federal student loan payments, out of a total of over 40 million borrowers. 

NPR, March 19