$1.7 trillion at stake: A decisive step towards ending the US Department of Education

The administration of US President Donald Trump has taken a new step that brings it closer to dismantling the US Department of Education, by transferring a major part of its tasks to other government agencies.

The ministry announced a joint agreement with the U.S. Treasury Department to transfer responsibility for managing defaulted student loan debts to the Treasury, which will collect them and support efforts to get borrowers back on their obligations.

Undersecretary of Education Nicholas Kent said the move was part of a multi-stage process aimed at gradually reducing the ministry's role.

During his 2024 election campaign, Trump pledged to abolish the Department of Education, and later signed an executive order directing his administration to begin dismantling it, as part of a vision to reduce the federal role in the education sector.

Kent explained that these inter-agency agreements represent a practical model to demonstrate that educational loan and grant programs can continue without the need for the ministry in its current form.

Researcher Andrew Gillen from the Cato Institute considered the transfer of the student loan portfolio a pivotal step, given that it represents the largest component in terms of budget and staff within the ministry.

He added that this step clearly indicates the transfer of a large part of the ministry’s powers to other entities, which effectively paves the way for its closure.

This move comes as part of a series of actions taken by the administration to transfer the powers of some programs and offices to different federal agencies, as part of a broader plan to dismantle the entire department.

In an official statement, Education Secretary Linda McMahon said the goal is to reduce bureaucracy in Washington, while strengthening the role of local leaders in education and improving the efficiency of federal programs.

The department also indicated that transferring loan management to the Treasury Department would help reduce losses for taxpayers and address what it described as mismanagement of the loan portfolio during Joe Biden's administration.

According to official data, total student loan debt in the United States is about $1.7 trillion, while less than 40% of borrowers adhere to repayment plans, and a quarter of them are close to default.

Experts believe that this step may contribute to simplifying loan and repayment procedures and reducing financial burdens, but at the same time it brings the administration closer to its ultimate goal of closing the Ministry of Education.

Kent emphasized that the ministry had made historic progress in a short period, noting that it had been reduced in size by more than 40%, that 10 inter-agency agreements had been concluded, and that employees had been transferred to work within other government agencies.

He added: We are proving to Congress that this model is viable, and we are working to enshrine these changes legislatively, with the ultimate goal of closing the ministry.

The administration of President Donald Trump has taken a new step that brings it closer to dismantling the US Department of Education by transferring a key part of its responsibilities to other government entities.

The department announced a joint agreement with the US Department of the Treasury that involves transferring the responsibility for managing defaulted student loan debts to the Treasury, which will take over the collection and support efforts to get borrowers back on track with their obligations.

Education Secretary Nicholas Kent stated that this step is part of a multi-phase process aimed at gradually reducing the role of the department.

Trump had pledged during his 2024 election campaign to eliminate the Department of Education and later signed an executive order directing his administration to begin dismantling it, as part of a vision aimed at reducing the federal role in the education sector.

Kent explained that these inter-agency agreements represent a practical model to demonstrate that student loan and grant programs can continue without the department in its current form.

For his part, researcher Andrew Gillen from the Cato Institute considered the transfer of the student loan file a pivotal step, as it represents the largest component in terms of budget and staff within the department.

He added that this step clearly indicates the transfer of a significant portion of the department's powers to other entities, effectively paving the way for its closure.

This move is part of a series of actions taken by the administration to transfer the powers of some programs and offices to different federal agencies, as part of a broader plan to fully dismantle the department.

In an official statement, Education Secretary Linda McMahon said the goal is to reduce bureaucracy in Washington while enhancing the role of local leadership in education and improving the efficiency of federal programs.

The department also indicated that transferring loan management to the Treasury will help reduce losses for taxpayers and address what it described as mismanagement of the loan file during Joe Biden's administration.

According to official data, the total student loan debt in the United States is about $1.7 trillion, while less than 40% of borrowers adhere to repayment plans, with nearly a quarter of them in default.

Experts believe that this step may help simplify loan and repayment processes and reduce financial burdens, but at the same time, it brings the administration closer to its ultimate goal of closing the Department of Education.

Kent confirmed that the department has made historic progress in a short time, noting a reduction in its size by more than 40%, the signing of 10 inter-agency agreements, and the transfer of employees to work within other government entities.

He added: We are proving to Congress that this model is viable, and we aim to solidify these changes legislatively, reaching the ultimate goal of closing the department.