Education Department transfers $1.7T student loan portfolio to Treasury

The Trump administration announced on March 19, 2026, that the Education Department would transfer its $1.7 trillion federal student loan portfolio to the Treasury Department in a phased agreement. Treasury will first assume management of approximately $180 billion in defaulted loans, with all remaining loans to follow. Secretary Linda McMahon cited a 25 percent borrower default rate as evidence the Education Department had failed at loan management. Senator Elizabeth Warren called on the department to rescind the transfer, arguing it lacked congressional authorization.