AFT Criticizes Treasury's Management of $1.7 Trillion Student Loans

Department of Education Transfers Loan Portfolio Management to Treasury

WASHINGTON—In a recent development, the U.S. Department of Education has decided to transfer the management of its $1.7 trillion student loan portfolio to the Treasury Department. This move has sparked a response from Randi Weingarten, President of the American Federation of Teachers (AFT).

Weingarten expressed concerns about the impact of this decision on American families who are already facing financial challenges. She stated, “Americans are already struggling to afford groceries, rent and child care—and this move, alongside the many others Secretary McMahon has made, will probably make things worse.” Her statement suggested that the shift of Education Department programs could increase bureaucracy and potentially result in additional costs for borrowers.

The AFT has been advocating for transparency and improvements in the student loan system for over ten years. However, Weingarten argued that the current administration has complicated these efforts by aligning with private collection agencies and implementing wage garnishment strategies. She called for Secretary McMahon to ensure that no extra costs would be imposed on borrowers due to this transition and that all discharge obligations would be fully honored.

Weingarten emphasized the need for more affordable college education, criticizing the administration for making it less accessible. “College should be more affordable. This administration has made it less so,” she noted.

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The AFT represents a diverse group of professionals, including 1.8 million pre-K through 12th-grade teachers, paraprofessionals, school-related personnel, higher education faculty and staff, government employees, nurses, healthcare workers, and early childhood educators.