Friday, March 20, 2026

New student loan debt collector

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This is America

Stories of justice and action across America

Fri Mar 20 2026

If you are one of the roughly 43 million people with student loan debt you might notice a new collector soon — the U.S. treasury.

Greetings, This is America readers, I'm Phillip M. Bailey, chief political correspondent at USA TODAY.

The Trump administration is beginning to gradually shift supervision of nearly $2 trillion in federal student loan debt away from the Education Department to the Treasury Department.

Republicans are calling it a "smart, practical move," that administration officials believe will be more efficient and cost effective for taxpayers. But Democrats on Capitol Hill are denouncing the change, saying it adds administrative barriers for borrowers who are already navigating a difficult repayment process.

It's a three-phase agreement without a specific timeline but initially it will only apply to the debt accumulated by Americans who've defaulted on their student loans. Eventually that shift will include the Free Application for Federal Student Aid, or FAFSA form, which is used by millions of students going to college each year.

Feb 28, 2023; Washington, DC, USA; Protestors gather outside the U.S. Supreme Court ahead of the oral arguments in two cases that challenge President Joe Biden's $400 billion student loan forgiveness plan.

Megan Smith/USA TODAY, Megan Smith/USA TODAY / USA TODAY NETWORK via Imagn Images

For more on student loan debt, check out USA TODAY's coverage:

Treasury Department to oversee student loans. What it means for you.Behind on student loans? You could be losing money from paycheck.

Student loan borrowers in default now able to keep tax refunds: Student loan borrowers who are in default now have some good news when it comes to debt collection.

$1 first class stamp? It's possible

The U.S. Postal Service could run out of money by 2027 if Congress doesn't act, and it is looking to raise some quick cash in the meantime.

That means raising the the price of a first‑class stamp from 78 cents currently to about 90 or 95 cents in order for what's often called "snail mail" to survive.

Postmaster General David Steiner said even with the hike that cost is much cheaper than in similar countries, such as $2.50 in England and $3 in France. He added the USPS also covers more territory, too.

But as more Americans move online the number of people who use the system has declined sharply over the years and has lost billions, according to the U.S. Government Accountability Office.

President Donald Trump wants to overhaul the agency, which relies on the sale of its goods and services for revenue. The president said last year he was considering moving the agency under the Commerce Department, which would put it under direct control from the executive branch.