The Trump administration is advancing its plan to dismantle the Department of Education by transferring student loan operations, including a $1.7 trillion portfolio, to the Treasury Department. This move follows an executive order and aims to shift federal education control to state and local levels.
by GEOFF HARRIS | The National News DeskWASHINGTON, DC - NOVEMBER 20: Secretary of Education Linda McMahon speaks during a White House press briefing with White House Press Secretary Karoline Leavitt on November 20, 2025 in Washington, DC.
McMahon addressed questions related to a recent initiative by the Trump administration to largely dismantle the Department of Education, moving many of its operations to other U.S. government agencies. The Education Department could be one step closer to shutting down. The Trump administration recently announced an interagency agreement to move student lending operations, which includes its $1.7 trillion portfolio, to the Treasury Department. The move comes about a year after Trump signed an executive order, which aimed to dismantle the Department of Education. My administration will take all lawful steps to shutdown the department. We're going to shut it down and shut it down as quickly as possible," Trump said in March, 2025. The order officially started the process of reducing the agency's size and shifting federal education control to states and local communities. States that run very well will have education that will run as good as Norway, Denmark, Sweden and Finland that do so well with education," said Trump. Now, a year later, the administration just announced this new three-phase plan involving the Treasury Department, aimed at tackling federal student loans. That is larger than you know, the collective credit card debt in this country and more than double the endowments of most universities. I mean it's an astounding number and the fact that it would be housed in education to begin with," Education Secretary Linda McMahon told Fox News last week. Called the 'Federal Student Assistance Partnership,' the agreement aims to address what officials call 'mismanagement' and collect defaulted federal loan debt. The first phase is focused on collecting defaulted student loans, which total roughly $180 million. The second phase, servicing non-defaulted student loans, and the third phase, potentially having the Treasury Department manage federal student aid. The Biden administration continued to confuse it. There were 7-9 programs out there either for repayment or for loan forgiveness and so what we had was a whole system of people not repaying their loans," McMahon said. Jeanne Allen, Founder & CEO of The Center for Education Reform, told The National News Desk, this move by the administration is meant to ensure that money gets handled by people who know how to handle it. And that it continues to be an effort to show that the Department of Education as an agency itself is no longer necessary or useful for the vast majority of issues," Allen said.Anyone handling what is literally billions of dollars of student aid, outgoing, coming back in and managing an incredible number of defaults, should actually have some purview over the U.S. Treasury," said Allen. But some Congressional Democrats disagree. Virginia Rep. Bobby Scott wrote in part, “As the cost of living continues to rise, Americans are already juggling student loan payments on top of groceries, gas, child care, health care, and housing. This is the last thing student borrowers need.” Plus, advocacy group 'Protect Borrowers,' “In the midst of a growing affordability crisis where American families are already struggling to make ends meet, this risks driving millions of borrowers further into financial hardship."According to the Department of Education, less than 40% of student loan borrowers are in repayment and almost 25% are in default.Controversy is growing around Austin ISD’s Pride Week, set for this week, as the State Board of Education calls on the district to get rid of the themed week alVice President JD Vance is swinging through Texas for a fundraising trip that will take him to Austin and then on to Dallas. Vance is here for a Republican NatiPolice have arrested a 59-year-old man in connection with a series of stalking and window peeping incidents, Austin police said.Anthony Golden was arrested FridOne person is dead and two others are injured after a two-vehicle crash on FM 969 Sunday evening, according to the Texas Department of Public Safety.Troopers reThe Austin Police Department has identified the victim of a homicide that occurred Sunday evening near the Mueller area in East Austin.Austin police are investi
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