Trump Administration Taps Treasury to Fix Student Loan Failures
For decades, the Department of Education has operated the federal student loan system on autopilot, continually expanding its size, complexity, and cost. The result is a $1.7 trillion portfolio — nearly twice the size of all university endowments combined and larger than JPMorgan Chase’s loan portfolio, the nation’s largest bank — yet it operates without the financial expertise, transparency, or accountability a system of this scale requires. The Department of Education reports that fewer than 40 percent of borrowers are in repayment, and nearly a quarter of borrowers are in default. While not designed to function as a bank, the Department of Education has been managing what is effectively the fifth-largest financial institution in the United States. A course correction Read More ›
