Trump's plan to transfer millions of student-loan accounts to the Treasury is in the works, officials confirm [View all]
Source: Business Insider
May 4, 2026, 3:17 PM ET
The Trump administration is beginning a complicated process of transferring millions of student-loan borrowers to a new agency. The Treasury Department confirmed in an April letter to Sen. Elizabeth Warren — released on Monday — that it has started preparations to take over the Department of Education's 9 million defaulted student-loan accounts.
The confirmation follows a March announcement that the transfer of student-loan accounts to the Treasury would occur in phases, beginning with defaulted accounts, with the goal of eventually transferring the rest of the federal portfolio to the agency. Mason Champion, the Treasury's assistant secretary, wrote in the letter that the transfer has so far "achieved two significant milestones," the first being a request for information from stakeholders on procuring agents to help defaulted borrowers with their options to return to good standing.
The second "milestone" was an agreement between the Treasury and Education Departments to send seven Education employees to Treasury, and two Treasury employees to Education, which Champion said will "support the implementation of the partnership, with an initial focus on the transition of operational responsibility for the defaulted portfolio to Treasury."
The letter did not specify a timeline for each phase, including the timing of the official handover of management of the defaulted portfolio to the Treasury. Warren said in a statement that the agreement "is bad for students and families, and I'll do everything I can to fight back," adding that the department has not provided evidence showing that the transfer would improve borrower outcomes.
Read more: https://www.businessinsider.com/student-loans-transfer-to-treasury-in-the-works-default-repayment-2026-5
Link to LETTER (PDF) - https://www.warren.senate.gov/imo/media/doc/response_from_treasury.pdf
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