The Reform That Would Mark the Beginning of the End for the Department of Education

National Review

by Andrew Gillen

February 15, 2026

AI-Generated Deep Dive Summary

The proposal to transfer the student loan portfolio to the Treasury Department has sparked significant debate, with some suggesting it could mark the beginning of the end for the Department of Education as we know it. This shift aims to streamline repayment processes and reduce bureaucratic inefficiencies, potentially benefiting both borrowers and taxpayers by simplifying administrative tasks and lowering costs associated with managing federal loans. Proponents argue that consolidating student loan operations under the Treasury would allow for more efficient debt collection and streamlined customer service, which are often areas where private companies excel. By aligning student loans with broader financial systems, this move could also create a more cohesive approach to handling government-backed loans, reducing overlap and potential conflicts between agencies. This proposal aligns closely with conservative ideologies that emphasize minimizing federal involvement in education and empowering state-level decision-making. Critics, however, warn of the risks associated with privatizing or centralizing student loan management, including concerns about reduced access to affordable financial aid and the potential for increased profit-driven lending practices. These debates highlight broader tensions over the role of government in education and financial services. Ultimately, whether this reform will redefine the Department of Education's role remains uncertain. However, its discussion underscores ongoing political efforts to reshape federal education policies and reevaluate the balance between federal oversight and state or private sector involvement

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Originally published on National Review on 2/15/2026