The Education Department agreed to transfer operational control of roughly $180 billion in defaulted federal student loans to the U.S. Treasury, marking a major administrative shift as the administration moves to dismantle the Department of Education. The transfer covers loans in default and sets a process for Treasury to assume broader responsibilities over time. Officials framed the move as a step toward improving collections and reorienting federal operations; Education Secretary Linda McMahon called it an "intentional and historic step" toward breaking up the federal education bureaucracy. Opponents warned of borrower confusion and legal challenges, noting federal law traditionally vests loan oversight in the Education Department. The handoff comes amid worrying borrower statistics: newly released federal data show a record number of borrowers in delinquency and default, heightening the political and operational stakes for any agency assuming management of troubled loans.